Qantas Sustainability Review 2012

Qantas Sustainability Review 2012
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TABLEOFCONTENTS
QantasSustainabilityReview2012 Governance..........................................................................................................................................................8 Environment.......................................................................................................................................................20 Social...................................................................................................................................................................... Customer..............................................................................................................................................26 People...................................................................................................................................................36 Community...........................................................................................................................................42 Glossary.............................................................................................................................................................49
QantasSustainabilityReview2012
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Heading Sustainability is fundamental to the Qantas Groups performance

FOR THE YEAR ENDED 30 JUNE 2012
Financial sustainability is our core goal building a strong, viable business capable of delivering superior returns for shareholders over the long term. But we cannot achieve this unless we maintain strong governance frameworks, ensure that Qantas is a good place to work for employees and provide world-class service to customers. Using resources efficiently in line with our environment strategy and working with the community are also vital to the Groups overall sustainability performance. If we set clear goals in all these areas and achieve them, financial sustainability is the outcome.
Qantas Group CEO Alan Joyce
CoMMitMent
The Qantas Group strives to operate in a sustainable manner. We seek to do this by continually improving our economic, social and environmental performance to address long term business risks and exploit opportunities as we seek to continue to deliver financially superior and sustainable returns to our shareholders.
RECOGNITION
Dow Jones Sustainability Index World - Member of the World Index since 2011 - 1 of only 2 airlines in the World Index Dow Jones Sustainability Index Asia Pacific - Member of the Asia Pacific Index since 2009 SAM Sustainable Asset Management - Silver Class 2012 SAM Sustainable Asset Management - Sector Mover 2012 Australian SAM Sustainable Asset Management - Member since 2009 FTSE4Good Index - Member since 2009 Carbon Disclosure Project - Listed on the Carbon Disclosure Leadership Index for Australia and New Zealand for 2010 and 2011
Heading
GOVERNANCE enVironMent
SAFETY Safety is our first priority. Safety is overseen by the Board and embedded throughout the organisation, including through the Qantas Management System. CARbON FOOTPRINT Fuel represents around 95% of the Groups carbon footprint. Fuel optimisation is the cornerstone of the Groups strategy to reduce carbon emissions and fleet renewal is our greatest opportunity to improve fuel efficiency. CORPORATE GOVERNANcE Corporate Governance is core to ensuring the creation, protection and enhancement of shareholder value. The Board maintains, and requires that Qantas Management maintains the highest level of corporate ethics. WATER, WAsTE AND NOIsE The Group is committed to being an environmentally responsible organisation which seeks to reduce resource consumption. Continuing to reduce the impact of aircraft noise on our communities is also a priority for Qantas.
QANTAs VALUEs AND ORgANIsATIONAL BEHAVIOURs The Group adopts a set of core brand values, underpinned by our organisational behaviours.
Heading
FOR THE YEAR ENDED 30 JUNE 2012
SOCIAL
CUsTOMERs Our Customers are the core of everything we do. The Group is continually investing in aircraft, product, service and innovative technology to provide an exceptional experience for customers. PEOPLE The success of the Qantas Group is underpinned by our Employees being skilled, motivated and supported to do great things.
EconoMic
FINANcIAL SUsTAINAbILITY We strive to build a strong viable business capable of delivering superior returns to shareholders over the long term. If we achieve our goals in all of these areas, financial sustainability is the outcome.
COMMUNITY The Group is not just a provider of air services, it is a major driver of economic activity in Australia and a responsible member of the Australian community.
Sustainability at Qantas
The Groups sustainability reporting framework is two-fold to represent the priorities and measures identified, as outlined below. 1. Sustainability Priorities - An Integrated Approach The Groups sustainability priorities are to continually improve our economic, social and environmental performance. A holistic review of governance structures, strategies and initiatives are detailed in this report, the Qantas Sustainability Review 2012. 2. Sustainability Measures Specific indicators have been selected to measure performance and are contained within the Sustainability Statistics and Notes within the Qantas Annual Report 2012. The measures are divided into the following categories and are also outlined in thediagram below: 1 Safety and Health 2 Environment 3 Customer 4 People 5 Financial 6 Community
To support the Groups core goal of delivering superior returns to shareholders, priorities and indicators measure the Groups performance in the areas which contribute to financial sustainability over the long term. The approach in determining these priorities and measures, is to demonstrate to stakeholders the integration of sustainability into the Groups strategy and operations. The Group reviews these priorities and measures to ensure that they represent material areas of focus and remain relevant. The Group also reviews voluntary sustainability frameworks, such as the Global Reporting Initiative (GRI) G3.1 Sustainability Reporting Guidelines and where selected indicators match the performance indicators recommended by GRI, a GRI indicator reference is provided. Sustainability Measures reported in the Sustainability Statistics and Notes, Qantas Annual Report 2012
Sustainability Priorities detailed in the Qantas Sustainability Review 2012 Corporate Governance Safety Business Resilience Group Security and Facilitation Group Audit and Risk Management Supply Chain Qantas Values Carbon Footprint Waste & Water Fleet Noise Qantas Qantas Frequent Flyer Jetstar Investing Recognising Supporting Listening Qantas Foundation In the Community
Governance
The Board endorses the ASX Corporate Governance Principles and Recommendations with 2010 Amendments, 2nd Edition Corporate Governance Statement Qantas Annual Report 2012
Environment
Aviation Fuel and Carbon Emissions Electricity Water Waste
Customer
Domestic On-time Performance
Social
People
Occupational Health and Safety Absenteeism Diversity National Export Revenue Domestic Traveller Expenditure Economic Output Underlying Profit Before Tax Net Underlying Unit Cost Free Cash Flow Average Fleet Age 7
Community
Economic
Qantas Annual Report 2012 and Qantas Data Book 2012
GOVERNANCE

2011/2012Highlights QantashasadoptedeightnewNonNegotiableBusinessPrinciplesthatformthe foundationfortheQantasGroupsCorporateGovernanceFrameworkandPolicies NamedasAustralianIndigenousMinoritySupplierCouncil(AIMSC)Corporate MemberoftheYear
FurtherinformationontheQantasCorporateGovernanceframework,includingacopy oftheQantasConstitution,BoardandCommitteeChartersandtheBusinessPractices Document,isavailableatQantas.com.
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GOVERNANCE
CORPORATEGOVERNANCE
Corporategovernanceiscoretoensuringthecreation,protectionandenhancementofshareholdervalue.TheQantasBoard (Board)isresponsibleforensuringthattheQantasGrouphasanappropriatecorporategovernanceframeworktoensurethe creation,protectionandenhancementofshareholdervalue.Thisrequiresthatappropriateaccountabilityandcontrol systemsareinplace.TheBoardalsomaintains,andrequiresthatQantasmanagementmaintains,thehighestlevelof corporateethics.
QantascorporategovernanceframeworkcomprisesanumberofprinciplesandpolicieswhichtogetherenableQantasto complywithlegal,regulatoryandethicalstandards.Theseprinciplesandpoliciesarederivedfromvarioussources,including theQantasConstitution(Constitution)andtheAustralianstatutoryandregulatoryframework.
TheConstitutionisQantaskeygovernancedocumentanditcontainsanumberofprinciplestowhichQantasmustadhere, includingthelocationofQantasprincipaloperationalcentreandplaceofincorporationandthelimitonforeignownership ofQantas.TheConstitutionissupplementedbytheQantasSaleAct1992,whichcontainsspecificprovisionsdesignedto protectQantas'positionasanAustraliandesignatedairline.
AsacompanyincorporatedinAustraliaandlistedontheAustralianSecuritiesExchange(ASX),Qantasmustcomplywiththe provisionscontainedintheCorporationsAct2001andtheASXListingRules.
QantasalsoendorsestheASXCorporateGovernanceCouncilsCorporateGovernancePrinciplesandRecommendationswith 2010Amendments,2ndEdition(ASXPrinciples).InlinewiththeASXPrinciples,theQantasGroupprovidesdetailsaboutits corporategovernanceframeworkannuallyinitsCorporateGovernanceStatement.The2012CorporateGovernance Statementiscontainedinthe2012QantasAnnualReportandisavailableintheCorporateGovernancesectionoftheQantas website.
ToassisttheBoardinsettingandreviewingthestrategicdirectionofQantasandmonitoringtheimplementationofthat strategybyQantasmanagement,theBoardhasadoptedaformalCharter.TheBoardCharterisavailableintheCorporate GovernancesectionoftheQantaswebsite.
QantasGroupGovernanceStructure
Board BoardofDirectors
TheBoardisprincipallyresponsiblefor: Settingandreviewingthestrategicdirectionof theGroup Monitoringtheimplementationofthat strategybyExecutiveManagement TheBoardCommitteesexisttoassistthe Boardinfulfillingitsdutiesandresponsibilities EachCommitteehasaformalCharterandhas beengrantedcertaindelegations TheExecutiveCommitteeisChairedbythe CEOwhoisalsoamemberoftheBoard Primaryfunctionistoreviewtheperformance oftheGroupandmakedecisionsthatimpact morethanoneSegment EachBusinessSegmenthasaManagement BoardchairedbytheSegmentCEO(Segment CEOs aremembersoftheExecutiveCommittee) SegmentManagementBoardsreview performance,budgets,strategyandoutlook
Board Committees
Audit Committee
Safety,Health, Environment andSecurity Committee
Remuneration Committee
Nominations Committee
Executive Management
GroupExecutiveCommittee
Management
Qantas Executive Team
Jetstar Executive Team
Loyalty Freight Corporate Management Management Management Board Board Board
TheQantasBoard
TheBoardcomprisesamajorityofindependentNonExecutiveDirectorswho,togetherwiththeExecutiveDirector(the QantasGroupChiefExecutiveOfficer(CEO)),haveanappropriatebalanceofskills,experienceandexpertise,andbringan independentjudgementtobearindecisionmaking.TheindependentNonExecutiveDirectorsareelectedbyQantas shareholders.
TheindependentNonExecutiveDirectorsandtheyearinwhicheachwasappointedtotheBoardaresetoutbelow.
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Director LeighClifford(Chairman) PeterCosgrove PatriciaCross RichardGoodmanson GarryHounsell WilliamMeaney CorinneNamblard PaulRayner JohnSchubert JamesStrong BarbaraWard
Yearofappointment 2007 2005 2004 2008 2005 2012 2011 2008 2000 2006 2008
TheNominationsCommitteemakesrecommendationstotheBoardtoensuretheBoardscompositionisconduciveto makingdecisionsexpediently,withthebenefitofavarietyofperspectivesandskills,andinthebestinterestoftheQantas Groupasawhole.
DetailsoftheDirectors,theirqualifications,skillsandexperiencearesetoutinthe2012AnnualReport,whichisavailablein theInvestorssectionoftheQantaswebsite.
Structure
Composition Chairman GenderDiversity
TwelveDirectors ElevenDirectorsareIndependentNonExecutiveDirectorselectedbyShareholders OneExecutiveDirector,ChiefExecutiveOfficerAlanJoyce Chairman,LeighClifford,isanIndependentNonExecutiveDirector TwentyfivepercentoftheDirectorsontheQantasBoardarewomen(3women)
BoardCommittees
ToassisttheBoardinfulfillingitsdutiesandresponsibilities,ithasestablishedthefollowingfourCommittees: NominationsCommittee RemunerationCommittee AuditCommittee Safety,Health,Environment&SecurityCommittee
EachCommitteehasaformalCharterandassiststheBoardbyconsideringdetailedissuesandmakingrecommendationsto theBoardaboutmatterswithineachCommitteesremit.EachCommitteesCharterisavailableinthecorporategovernance sectionoftheQantaswebsite.
Committee NominationsCommittee
RemunerationCommittee
AuditCommittee
Safety,Health, Environment&Security Committee
AssiststheBoardinregardto: Boardappointments,reelectionsandperformance; diversityobligationsandtargets; Directorsinductionprogramsandcontinuingdevelopment; CommitteeMembership;and successionoftheCEO. theremunerationframeworkforNonExecutiveDirectors; remunerationandincentiveframeworkfortheCEO,ExecutiveCommitteeMembersandSeniorExecutives; recommendationsanddecisions(asrelevant)onremunerationandallincentiveawardsfortheCEOand ExecutiveCommitteeMembers;and strategichumanresourcespolicies. theintegrityoftheQantasGroupsfinancialreporting; compliancewithlegalandregulatoryobligations; theeffectivenessoftheQantasGroupsenterprisewideriskmanagementandinternalcontrolframework; and oversightoftheindependenceoftheexternalandinternalauditors. fulfillingitsstrategy,policy,systemoversight,monitoringandcorporategovernanceresponsibilitiesinregard tosafety,health,environmentandsecuritymattersincluding: compliancewithrelatedlegalandregulatoryobligations;and enterprisewideriskmanagement.
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QantasGroupManagement
TheCEOisresponsibleforthedaytodaymanagementoftheQantasGroup,withallpowers,discretionsanddelegations authorisedfromtimetotimebytheBoard.
TheGroup'sexecutivemanagementteamistheQantasGroupExecutiveCommittee(ExecutiveCommittee).TheExecutive CommitteeischairedbytheCEOandmeetsfortnightlytoreviewtheperformanceoftheGroupandmakedecisionsthat impactmorethanoneGroupbusinesssegment(Segment).
SegmentManagement
TheQantasGroupcomprisesthefollowingSegments,eachofwhichhasadedicatedmanagementteamthatischairedbythe Segmentchiefexecutiveofficer(orequivalent)(SegmentCEO):
Qantas Jetstar Loyalty
Freight Corporate
EachSegmentCEOisamemberoftheExecutiveCommittee.TheSegmentmanagementteamsreviewperformance, budgets,strategyandoutlook.
QANTASGROUPGOVERNANCEFRAMEWORK
The Qantas Groups NonNegotiable Business Principles are supported by the Group Policy Framework, Group education and training programs, and governance processes including assuranceandreporting.

QantasGroupNonNegotiableBusinessPrinciples Duringtheyear,theBoardadoptedtheQantasGroupNonNegotiableBusinessPrinciples(Principles).ThePrinciplesareset outbelow.
1. 2. 3. 4. 5. 6. 7. 8.
Wearecommittedtosafetyasourfirstpriority Wecomplywithlawsandregulations Wetreatpeoplewithrespect Weactwithhonestyandintegrity,upholdingethicalstandards Wearecommittedtotrueandfairfinancialreporting Wearecommittedtoenvironmentalsustainability WehavearesponsibilitytosafeguardQantasGroupreputation,brands,property,assetsandinformation Weproactivelymanagerisk
ThePrinciplesformthefoundationfortheGroupscorporategovernanceframeworkandthewaytheGroupundertakes business.
QantasGroupPolicyFramework
InlinewiththeQantasGroupsongoingcommitmenttocorporategovernance,theGroupPolicyFrameworkwasalsorevised duringtheyeartoensurethatQantasGroupPoliciescontinuetobefitforpurposeastheGroupevolves.
TheQantasGroupsBusinessPracticesDocumentprovidesasummaryofthePrinciples,keyvaluesandbusinesspracticesof theGroup,includinghowtheGroupundertakesbusiness,managesriskandengageswithstakeholders.
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TheQantasGrouphasalsoupdateditssuiteofGroupPoliciestoreflectthePrinciplesandoutlinetheminimumexpected standardsacrossarangeofgovernanceareas,including:
safetyandhealth legalmatters financematters
contractreviewandexecution environmentandsustainability informationtechnology
security riskmanagement
TheBoardpromotesethicalandresponsibledecisionmakingandtheQantasGroupCodeofConductandEthicssetsout Qantasexpectationsinanumberofareasincluding:
compliancewithlaws,regulations andethicalstandards continuousdisclosure sharetrading politicaldonationsandprohibited payments WhistleblowerPolicy
compliancewithcompetitionlaws givingorreceivinggifts conflictsofinterest accountingrecordsandretention ofrecords dealingwithauditors
makingpublicstatementsabout theQantasGroup useofconfidentialinformation treatingpeoplewithrespect thewhistleblowerprocess privacy equalemploymentopportunity
TheQantasGroupWhistleblowerPolicyencouragesemployeestoreportconcernsrelatingtoillegal,unethicalorimproper conductincircumstanceswheretheymaybeapprehensiveaboutraisingtheirconcernbecauseoffearofpossibleadverse repercussions.
Qantashasanestablishedwhistleblowerhotlinethroughwhichemployeesmayreportconcernsandmaychoosetoremain anonymous.ThehotlineisindependentlymanagedonbehalfofQantasbyPricewaterhouseCoopers.
TheQantasGroupWhistleblowerCommitteemanagesinvestigationsandreportstotheBoardandAuditCommittee.
TheWhistleblowerPolicyisavailabletoallQantasGroupemployeesandissummarisedintheQantasGroupBusiness PracticesDocumentwhichisavailableintheCorporateGovernancesectionontheQantaswebsite.
OtherPolicies
TheQantasGroupalsohasformalpoliciesandstatementsrelatingtoitslegalandotherobligationstoalllegitimate stakeholders.Theseincludeareassuchassafety,health,environment,security,employmentpractices,diversityandfair trading.Policiesaresupportedbyproceduresforcomplianceandmonitoringeffectiveness.
MandatoryTrainingProgram
TheQantasGrouphasarobustmandatorytrainingprogramrecognisingtheimportanceofembeddingthePrinciples,Group Policiesandthestandardsexpectedofemployees.Thetrainingprogramincludesadditionalrolespecifictraining(suchas thoseinasafetysensitiveroleorcustomerfacingenvironment).AQantasGroupTrainingCouncil,comprisedof representativesfromacrossthebusinessandGroupPolicyowners,overseesthetrainingprogram.
GroupAssuranceandReporting
AnumberofassuranceactivitiesareundertakenbytheGroup,includingabiannualselfassessmentquestionnairewhichis requiredtobecompletedbycertainoperationalandfinancialmanagersidentifiedwithintheQantasGroup.TheGroups AuditandRiskdepartmentalsoprovidesindependent,objectiveassuranceandconsultingservicesonQantassystemofrisk management,internalcontrolandgovernancethroughmaintainingandimprovingtheriskmanagementframeworkas approvedbytheBoard,biannualriskreportingtotheBoardandperformingauditsandotheradvisoryservicestoassurerisk managementthroughouttheQantasGroup.FurtherinformationisoutlinedintheGroupAuditandRisksectionofthis document. FurtherinformationaboutcorporategovernanceattheQantasGroupisavailableatqantas.com. AsummaryofQantascorebusinessprinciples,valuesandpracticescanbefoundintheQantasGroup BusinessPracticesDocumentwhichisavailableintheCorporateGovernancesectiononqantas.com.
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BEHAVIOURSANDVALUES QantasGroupBehaviours
UnderpinningthecompanysbrandvaluesaretheGroupsorganisationalbehaviours.OrganisationBehavioursdefinehow Groupemployeesbehaveeverydayatwork.Byadoptingthesebehavioursaspartofdailyroutines,employeesareexhibiting brandvaluesandcontributingtowardstheachievementoftheQantasGroupvisiontobeoneofAustraliasgreatbusinesses andamongtheworldsgreatAirlineGroups. SafetyDemonstrateagenuinecommitmenttosafety ServiceHaveacandoattitudeandIdelivermypartofthecustomerpromise InnovationChallengethewaythingsaredoneandtakeownershipforfindingabetterway CollaborationWorkwithotherstocreateawinningcultureandanenjoyableplacetowork IntegrityBeopen,listen,andspeakhonestlyandrespectfully QantasValues
AnestablishedsetofcorevaluesallowsQantasemployeestobetterconnectwitheachotherandtoQantascustomers. Qantasisabrandthatcares,isforwardthinking,haswisdomofexperienceandrepresentsthebestofcontemporary Australia.
JetstarValues
JetstaralsohasvalueswhichsupporttheGroupsvisiontobeoneofAustraliasgreatbusinessesandamongtheworlds greatAirlineGroups. BeEnergeticallyEfficient BeResponsible BeConsistentlyCanDo Besafe,speakup,takeownership, Beresourceful,cutoutwaste, Embracechallenges,beprepared, beaware,beempowered. simplify,beproductive, thinkahead,anticipateneeds, understand ourway. prioritise. GenuinelyCare PassionateAboutEnjoyment Befriendly,smile,listento Beenthusiastic,bedowntoearth, understand,beempathetic, bepositive,celebratesuccess,be gotheextramile. imaginative.

ThevisionoftheQantasGroupistobeoneofAustraliasgreatbusinessesand amongtheworldsgreatAirlineGroups
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OTHERKEYAREASOFGOVERNANCEFOCUS
TosupporttheGroupsCorporateGovernanceFramework,specialistareaswithinthebusinessapplyvariousgovernance frameworkstoensurecompliancewithregulatory,legalandotherobligations.TheseincludeSafetyandHealth,Business Resilience,GroupSecurityandFacilitation,GroupAuditandRiskandSupplyChain.Theseareasarediscussedinthe followingpages.
Safety
Business Resilience
GroupSecurity andFacilitation
GroupAudit andRisk
SupplyChain
SAFETY
SafetyunderpinseverythingthatisdoneatQantastheoperationalsafetyofaircraft,theoccupationalhealthandsafetyof employeesandcontractors,andthewellbeingofcustomers.
TheGroupssafetygovernanceframeworkisdesignedtoobtain,collateandsortrelevantsafetyinformationandreportthis informationtoappropriatedecisionmakerswithintheGroup.TheGroupsafetygovernanceframeworkisillustratedbelow.
Safety,Health,EnvironmentandSecurityCommitteeThe primaryfunctionofthiscommitteeisto: Monitortheadequacyofsafety,health,environmentand securitysystemsforthereportingofactualorpotential accidents,breachesandincidentsthroughouttheGroup Monitorsubsequentinvestigationsandremedialactions Monitorthesafety,health,environmentandsecurity processesmaintainedbyGroupassociatedbusinesses TheAuditCommitteeassiststheBoardinmonitoringthe effectivenessoftheQantasGroupsenterprisewiderisk managementandinternalcontrolframework. GroupSafetyandHealth AirlineSafetyCommitteesForGroupairlineoperations, AirlineSafetyCommitteesaretheprimarygovernanceforums thatmonitorsafetyperformance. TheseCommitteescompriseofeachoperatorsAccountable Manager(orAirOperatorCertificateHolder)andKey PersonnelasdefinedintheCivilAviationRegulations,aswell asotherbusinessstakeholdersresponsibleforthesafe operationofQantasGroupaircraft. ThesestakeholderscoveraspectsofFlightOperations,Ground Operations,CabinOperationsandEngineeringand Maintenance.Inadditiontooperationalsafety,AirlineSafety CommitteesalsomonitorWorkplaceHealthandSafety performanceandrisks. AirlineSafetyCommitteesaresupportedbySubCommittees thatrepresenteachoperationalarea. GroupSafetyandHealth isresponsibleforproviding independentobjectiveadviceonaviationsafetystandardsand safetyoversightfortheBoardanditsCommittees.Group SafetyandHealthoperatesindependentlyofanyotherGroup businessdivisionandisdirectlyaccountabletotheGroupCEO. GroupAuditandRisk isresponsibleforprovidingindependent advicetotheAuditCommitteeonriskbasedassuranceof strategic,financialandoperationalrisksacrosstheGroup. GroupAuditandRiskconductinternalauditsacrosstheGroup aswellasmanagingtheconductofexternalindependent audits. BoardSafetyAdvisor
Board
Audit Committee
Safety,Health,EnvironmentandSecurity Committee CEO
WhistleblowerProgram
GroupAudit&Risk
GroupExecutiveCommittee (CEOBriefings)
Express Freight Jetstar QantasLink Network Jetconnect Qantas Enterprise Freighters Airline Airlines Management Australia Airlines Airline Airline Safety Safety Safety Safety Safety Airline Review Committee Committee Committee Committee Committee Meeting Safety Committee
BusinessUnitSafetySubcommittees
SafetyReporting
Openandtransparentreportingofsafetyperformanceandrelatedmattersthroughthesafetygovernanceframeworkis centraltothemanagementofsafetyintheQantasGroup.AirlineSafetyCommitteesandSubCommitteesconvenemonthly andreviewadetailedManagementreportcoveringmaterialaspectsofoperationalandworkplacesafety.Eachsegmentwill alsoreportmaterialsafetymatterstotheGroupExecutiveonamonthlybasis,withareportproducedfortheSafety,Health, EnvironmentandSecurityCommitteethreetimesperyear.
Externally,theQantasGroupcomplieswithallregulatoryreportingrequirements,includingthoserelatedtotheAustralian TransportSafetyBureau(ATSB),CASAandvariousstatebasedWorkplaceHealthandSafetyAuthorities.TheQantasGroup alsocomplieswithallregulatoryreportingrequirementsintheinternationaljurisdictionsinwhichitoperates.

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BUSINESSRESILIENCE TheQantasGrouphasanindustryleadingBusinessResiliencecapabilitytoproactivelyidentifydevelopingrisks,respond effectively,recoverquicklyandalwaysemergeasastrongerandmorecapableorganisation.

Board Board Committees Board Safety,Health,EnvironmentandSecurityCommittee Assuranceoftheresiliencecapabilityisprovided totheBoardviatheSafety,Health,Environment andSecurityCommittee,reportingonrecent events,preparationexercisesandcapability developments.
Group Policies
BusinessResiliencePolicy
Systems
QantasManagementSystem BusinessResilienceManagementSystem
TheGrouphasaneffectiveBusinessResilience frameworkthatbringstogetherthedisciplines ofrisk,threat,businesscontinuityandcrisis managementinordertodealwithanuncertain globalenvironment. Thisframeworkiscentrallycoordinatedfrom withintheOfficeoftheCEOthroughadedicated BusinessResilienceteam,providingpolicyand governanceforaccountablemanagersineachof theQantasGroupAirlinesandBusinessUnits. Ithasalsodesignedriskprocessesthatenable resilienceoptionstobeidentifiedaspartofrisk mitigationoptions,suchasthoseassociated withprojects,technologyinitiatives,markets andfinance,commercial,regulatoryinterface andindustrialrelations.
Group Procedures andGuidelines
Group Emergency Response Procedures
Continuity Program
Contingency Support
GroupCrisis Management Plan
BusinessArea Procedures andGuidelines
Local Emergency Response Procedures
CriticalBusiness Analysis ContinuityPlans forCritical functions
Contingency Plansas requiredbya threat,riskor incident
RelevantGroup Crisis Management documentation
CrisisManagement TheGroupmaintainsahighlyeffectivecrisismanagementcapabilitytoreducetheimpactofunavoidableevents.This capabilityallowsthebusinesstoquicklycometogethertomanageboththestrategicandoperationalimpactsoftheevent andtocoordinatediversestakeholders. ThiscapabilityisalsoutilisedwhentheGroupprovidessupporttoGovernmentandhumanitarianoperations,suchasthe evacuationofAustraliancitizensfromCairo,theQueenslandfloodsandtheChristchurchearthquakeinearly2011. ThiscrisismanagementcapabilitymeetsandexceedsIOSAAirlineEmergencyResponseorganisationalstandards,CASA requirementsandenablestheQantasGrouptomeetbothvoluntaryandregulatedFamilyAssistanceCodesinternationally. BusinessContinuity InadditiontothisresponsiveCrisiscapability,theQantasGrouphasanongoingproactivebusinesscontinuityprogram focussedonsystematicallycapturingthedependenciesthatcriticaloperationalprocesseshaveacrossarangeofareassuch technology,physicallocationsandsupplychainsinordertoidentifyandmitigateanyvulnerabilities,developeffective continuitystrategiesandreducepotentialimpacts.
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GROUPSECURITYANDFACILITATION Risk SecurityManagementSystem basedOutcomesFocus Qantasiscurrentlyrecognisedby The IATAasbeingaworldleaderinthe QantasGroupcontinuestooperateinanenvironmentofevolvingand adaptable securitythreatsandassuchanintegratedsecuritycoordination, developmentofaSecurity threat monitoringandassurancemodelisessentialtoensureoperational ManagementSystemincludingbest continuity andtheprotectionoftheGroupspeople,customers,assets,brand practiceresearchintoaviation and securityculture. otherinterests.Asregulatorsandindustrymovetoembracetherisk based outcomesfocusedconcept,Qantasmustleveragefromthisandbuild security capabilityinthebusiness.Theriskbasedoutcomesfocusedconcept oneWorldSecurityCommitteeand lends itself to the notion that front line staff and managers know their IATAIOSASecurityTaskForce to identify a environment better than most and are therefore best placed Committee security threat before anyone else. This capability needs to be nurtured, Harmonisationandinfluencing enhanced and supported by a robust security management system which activitieshaveresultedinQantas provides for effective lines of reporting, assurance, leadership and continuous beingtheChairoftheoneWorld improvement. SecurityCommitteeandViceChairof theIATAIOSASecurityTaskForce Qantas GroupSecurityManagementSystem Committee. Improved securitysystemsrequireinputfromthosewhoworkwithinthe InternationalSubCommitteeofthe system everyday.Assuch,theQantasGroupSecurityManagementSystem USDepartmentofHomelandSecurity aims AviationSecurityAdvisory toincreasesecurityawarenessthroughcontinuousimprovementof security processesandenhancingthesecuritycultureacrosstheGroup. Committee MorerecentlyQantashasalsotaken Security CapabilityinBusinessUnits upmembershipoftheInternational SubCommitteeoftheUSDepartment The ofHomelandSecurityAviation keytoanimprovedsecuritycultureisleadershipandcommitment, demonstrated bythedegreetowhichtheorganisationholdsmanagersand SecurityAdvisoryCommittee. employees accountableforsecurityandfacilitationoutcomes.Togiveeffect to this, Group Security & Facilitation has recently restructured in order to ContractedSecurityServicesUnit further develop security capability in the business. The new structure InMay2012theGroupsContracted maintains a centralised strategic policy setting and corporate security advisory SecurityServicesUnitwereawarded dedicated security teams aligned with the new Qantas role and establishes ExcellenceinSecurityManagement Group structure. attheannualAustralianSecurity IndustryAwardsforExcellence presentationnight. GroupOversight TheGroupwillcontinuetoprovideprofessionalsecurityandfacilitationoversightandadviceacrossthebusiness,especially withregardtoassuranceandcrisissupport.TheGrouphastheappropriateskills,knowledgeandattitudetoensureeffective securityandfacilitationoutcomes,aproactivesecurityculture,assurethebusinessandsupportoperationalcontinuity. BenefitsovertimefromtheGroupsstrategicanddynamicapproachtosecurityandfacilitationincludesaconsistentlysafe andsecureoperation,operationalcontinuity,compliancewithregulationandtheruleoflaw,enhancedfacilitationanda proactivesecurityculture.
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GROUPAUDITANDRISK
GroupAuditandRiskprovidesindependent,objectiveassuranceandconsultingservicesonQantassystemofrisk management,internalcompliance,controlandgovernanceandreportsdirectlytotheGroupExecutivePeopleandCorporate Services(adirectreportoftheCEO)withanadditionalindependentreportinglinethroughtheAuditCommitteetothe QantasBoard.
Board
TheAuditCommitteeassiststheBoardinmonitoringthe effectivenessoftheQantasGroupsenterprisewiderisk managementandinternalcontrolframework. Safety,Health,EnvironmentandSecurityCommitteeassiststhe BoardwiththeGroupsenterprisewideriskmanagement. GroupExecutiveCommitteeistheprimarygovernanceforum thatmonitorsriskmanagementperformance.TheCommitteeis madeupofthemembersoftheGroupExecutive. TheQantasGrouphasadoptedacommonriskmanagement framework(theframework)thatcoversQantasGroup operationsandfacilitatestheassessmentofrisk.Theframework includesdefinedtimeframesforthenotificationandevaluation ofriskanddefinedtimelinestoactiontherisktreatments.The frameworkemploystheaslowasreasonablypracticable (ALARP)principlefortheevaluationofriskstosafetyandhealth. BusinessSegmentManagementBoards areaccountablefor implementingtheriskmanagementframeworkandidentifying andmanagingriskwithinthebusinessinthepursuitoftheir strategicandoperationalobjectives,includingtherisktosafety andhealth.Riskmanagementisincorporatedintocritical businessprocessesmanagedbyindividualbusinessunits providingmanagementwithdecisionmakingsupport. BusinessUnits areresponsibleformonitoringthatrisk managementcontrolsareeffective. GroupAuditandRisk isresponsibleforprovidingindependent advicetotheAuditCommitteeonriskbasedassuranceof strategic,financialandoperationalrisksacrosstheGroup.Group AuditandRiskconductriskbasedinternalauditsacrossthe Groupaswellasmanagingtheconductofexternalindependent audits.
AuditCommittee
Safety,Health,Environmentand SecurityCommittee
GroupExecutiveCommittee GroupAudit&Risk
AssuranceActivities
Qantas Executive Team
Jetstar Executive Team
Loyalty Executive Team
Freight Management Team
Corporate Management Team
BusinessUnits
RiskmanagementinTheQantasGrouphasmaturedtobefullyembeddedinlineManagementaccountabilities,enablingthe integrationofriskmanagementintoallbusinessactivitiesanddecisionmakingprocessestoensuretheGroupeffectively managesitsrisks.TofullysupportQantasGroupemployeesintheirunderstandingofriskmanagementanumberoftraining coursesareavailabletoemployeeswhichreinforcetheprinciplethateveryemployeehasaresponsibilitytoidentify,report and/ormanageriskasitarises.

Nonnegotiable principles
Mandate&Commit
TheNonNegotiableBusinessPrincipleWeproactivelymanagerisk establishesQantasGroupscommitmenttoriskmanagement. TheGroupRiskManagement Policy outlineshowriskmanagement supportstheachievementofbusinessobjectivesandcorporate governancerequirements,theminimumrequirementsforrisk managementandroleresponsibilities.ThePolicyisownedbythe Headof GroupAuditandRisk. FrameworkDesignGroupAuditandRiskisresponsibleforproviding independentadvicetotheAuditCommitteeonriskbasedassuranceof strategic,financialandoperationalrisksacrosstheGroup.GroupAudit andRiskisaccountableforthedesignoftheRiskManagement Framework.GroupAuditandRiskmaintainexpertiseinrisk managementframeworkdesignandimplementationandworkalongside thebusinesstodesigntheframeworkthatcreatesandprotectvalueand generatesstrategicadvantagefortheQantasGroup. ImplementRiskManagementBusinessUnitsareaccountablefor implementingtheriskmanagementframeworkandidentifyandmanage riskwithinthebusinessinthepursuitoftheirstrategicandoperational objectives,includingtherisktosafetyandhealth. MonitorandReviewGroupAuditandRiskengagewiththebusinessto monitorandreview theimplementationoftheriskmanagement frameworktoidentifygapsintheeffectivemanagementofrisk;and opportunitiestocontinuouslyimprovetheframework. ContinualImprovement Independentreviewsoftheriskmanagement frameworkdesignandimplementationareconductedtoassuretheAudit CommitteeoftheeffectivenessoftheGroupsmanagementofits materialrisks.
GroupRiskManagementPolicy
GroupAudit&Risk
Frameworkdesign BusinessUnits
Continual improvement
Implementrisk management
Monitoring& Review
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SUPPLYCHAIN QantasGroupProcurementPoliciesandProcedures TheQantasGroupiscommittedtoapplyingaholisticapproachtoprocurementwhichensuressupplierrelationshipsand costsaremanagedinacompetitive,fairandethicalmanner.

TheQantasGroupProcurementPolicy TheQantasGroupProcurementPolicyoutlinestheminimumrequirementsandresponsibilities inrelationtothegovernanceoftheprocurementofgoodsandservicesbytheQantasGroup. ProcurementTransformation QantasiscurrentlyundertakingaProcurementTransformationPrograminordertoimplementa centreledprocurementoperatingmodel. ProcurementTransformation IntroductionofCentreLedProcurementOperatingModel TheProgramwillallowQantastomovetowardsbecomingabestinclass procurement performerthroughtheintroductionofleadingprocurementpracticesandprocesses, deploymentofcommontechnologyapplicationsandimplementationofaneffectivegovernance structuretoensuretheseimprovementsaresustained. SustainableProcurementProcedure In2011/2012theGrouplaunchedaSustainableProcurementProcedure.Designedto complementtheexistingProcurementPolicyandproceduresthepurposeoftheSustainable ProcurementProcedureisto: Achievevalueformoneythroughtheapplicationofenvironmental,communityand corporatesustainabilityneeds Supportthebusinessandobjectiveswithinnovativeresponsiveprocurement SustainableSourcing TheQantasGrouphasintroducedasustainabilityquestionnairetobeusedinsourcing activities.Thequestionnaireisdesignedtogainanunderstandingofthevendorspoliciesand practicesonarangeofenvironmental,governanceandsocialissues. SupplierRequirements TheQantasGrouphasdetailedexpectationsofallsuppliers.Theseexpectationsarecontainedin SupplierRequirementsthatformpartofallSupplierContracts.Coreresponsibilitiesinclude,but arenotlimitedto,occupationalhealthandsafety(OHS),standardsofpersonalbehaviour,equal opportunity,harassment,bullying,theft,fraudandenvironmentalimpacts. SupplierRelationshipManagement TheQantasGroupconductssustainabilityriskanalysisandmitigationatthepreengagement requestforproposal(RFP)processandthroughouttherelationshipviaauditand commercial/operationsgovernancemeetings.Contractmanagementmeetingsaretypically heldmonthlywithsupplierrelationshipmanagement(SRM)meetingsbeingheldquarterlyor biannually,bothcovertopicssuchashealth,safetyandenvironmentcompliance,issuesand risks,customersatisfactionandauditfindings.
GroupProcurementPolicy
Sustainable ProcurementProcedure
SupplierRelationship Management
Sustainable Sourcing
SupplierRequirements andStandards
SupplierDiversity
AsAustraliasnationalcarrier,Qantasiswellplacedtoforgeinnovativepartnershipsandfostermutuallybeneficial relationshipswithIndigenoussuppliersacrossAustraliaandcontinuestoexploreopportunitiestobetterdevelopand integrateoursupplierdiversitystrategy,withthegoalofbecomingaleaderinsupplierdiversityinAustralia.Supplier diversityandengagementwiththeAustralianIndigenousMinoritySupplerCouncil(AIMSC)havethecommitmentand supportoftheChiefExecutiveOfficer,ExecutiveCommitteealongwithadvocacyfromtheChiefProcurementOfficer,the ProcurementteamandManagerReconciliation.
InApril2012QantaswasnamedAIMSCCorporateMemberoftheYear.
QantasisafoundingmemberofAIMSCandproudlybecamethefirstAIMSC foundingmemberinAustraliatosignanagreementwithanAIMSCSupplier, MessageStickCommunications.QantashascontractedwitheightAIMSC Certifiedbusinessesoverthepastyear,acrossarangeofgoodsandservices. UndertherecentlyrefreshedQantasReconciliationActionPlanQantashascommittedtointroducingAIMSCcertified businessesintothreenewareasofthebusinessoverthenexttwoyearswithaminimumoftencontractsinplaceby December2013.
Inaddition,theQantasProcurementpolicyandguidelineshavebeenamendedandnowinstructQantasProcurementbuyers toconsulttheAIMSCSupplierlistwhendevelopingalistofpotentialsuppliersand,whereappropriate,toincludecapable Indigenoussuppliersinthesourcingprocess.TheQantasReconciliationandProcurementteamshaveworkedtogetherto establishpolicies,proceduresandmechanismstoensurethatQantasbusinessreflectstheQantasvaluesofdiversityand inclusion.

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ENVIRONMENT
Priorities Fuel: - An average improvement in fuel efficiency of 1.5 per cent per annum to 2020 - Carbon Neutral Growth by 2020
Actions Taken During 2011/2012 Australias first commercial sustainable aviation flights Announced sustainable aviation fuel feasibility study Continued fuel optimisation Continued fleet renewal
Progress
On Track
Resource Reduction by 2020 (2009/2010 Baseline): - 10 per cent for Electricity - 10 per cent for Water - 20 per cent for Direct waste to landfill
Implementation of business unit specific targets that underpin the Groups targets Commissioning of stage one of Australias largest commercial Tri-generation plant Continued diversion of general waste in Sydney to an Advance Waste Treatment facility Continued resource reduction initiatives introduced across the Group
On Track

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ENVIRONMENT Environmental Governance

Safety, Health, Environment and Security Committee The Qantas Groups progress in relation to climate change and environmental performance is escalated through Business Unit Safety and Operational Committees to the Safety, Health, Environment and Security Committee which meets three times a year to review the Groups Environmental progress and status. In addition, The Board endorses the Groups Environment strategy and sets performance measures for relevant executives.
The Qantas Group Environmental Management System (EMS)
The EMS has been designed to align with both the Qantas Management System (QMS) and the requirements of the International Standard for Environmental Management (ISO14001:2004). This approach ensures that the business has a consistent approach to environmental management both at a strategic and operational level. It also assists the Groups implementation of a best practice approach to the management of environmental impacts.
The Qantas Group Environment Policy exists to define: - The Qantas Groups commitment to continual improvement in environmental management throughout all levels of the organisation - The minimum requirements for identifying, assessing and managing environmental aspects and impacts - The framework for setting and reviewing objectives and targets - The requirements to maintain legislative compliance - The roles and responsibilities for environmental management
The Qantas Group Environment Policy
The Qantas Group Environmental Strategy

The Group's Environment Strategy comprises four key elements: - Continuous improvement in environmental efficiency - Early adoption and persistence in innovative fuel and carbon management - Embedding environmental values to increase marketability and strengthen belief in the brand - Influencing global regulators to achieve sustainable lowest cost carbon compliance
Qantas Group Environmental Strategy
The Qantas Group Environmental strategy articulates the key global strategic levers that underpin the Groups environmental performance and will lead to tangible progress towards performance improvement. The strategy considers external drivers, such as climate change, the rapidly changing regulatory landscape and evolution of stakeholder expectations, as well as internal behavioural drivers that will shape the Groups performance. It is developed in conjunction with business units throughout Qantas Group and focuses on initiatives designed to allow the Group to harness potential opportunities to improve environmental efficiency as well as to effectively manage risks from the Groups environmental impact.
Environmental Priorities
Direct greenhouse gas emissions are the material issue facing the aviation industry, as such, fuel optimisation through fuel efficiency measures is the cornerstone of the Qantas Groups environmental strategy. Other key priorities are utilities / resource efficiency and management of noise impacts.
Environmental Priority Areas

Direct Greenhouse Gas Emissions Noise
Utilities / Resources Fuel Efficiency Fleet Renewal
Electricity Sustainable Aviation Fuel Fleet Renewal Community Operational Procedures
Carbon Offset
Waste
Water

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Direct Greenhouse Gas Emissions

The Qantas Group's Domestic Carbon Footprint*
The Qantas Groups Carbon Footprint

Avia tion Fuel 94%
Aviation fuel constitutes over 94% of the Qantas Groups domestic carbon footprint. As such, the reduction of carbon emissions from aviation fuel is the core environmental priority for the Qantas Group. Fuel optimisation and fuel efficiency improvement continue to be key focus areas for the Groups energy conservation measures and are key elements in the Groups environmental improvement strategy.
Electricity Other
5% 1%
94%
*Based on 2010/2011 NGERs Submission
Qantas is targeting an average improvement in fuel efficiency of 1.5 per cent per annum to 2020 (measured as litres of fuel per revenue tonne kilometre (RTK) against a 2008/2009 baseline). This goal is consistent with that set by the International Air Transport Association (IATA) for the industry. In addition, the Qantas Group has committed to achieve carbon neutral growth by 2020 and to see a 50 per cent reduction in carbon emissions by 2050, relative to 2005 levels. The Qantas Group believes this goal is achievable by embracing technological innovation in efficiency and by securing commercially viable alternative fuel sources that are genuinely sustainable.
The Qantas Group's Fuel Efficiency 40.5 12,800 12,600 12,400
40.1
Fuel Efficiency (Litres of fuel per RTK)
The Qantas Group s Emissions Commitments

From an FY09 Baseline An average improvement in fuel efficiency of 1.5% per annum By 2050 A reduction in carbon emissions of 50% relative to 2005 levels
40.0 39.5 39.0

38.6 38.7 38.8
12,000 11,800 11,600
From 2020 Carbon Neutral Growth
38.5 38.0 37.5 FY2009 FY2010 FY2011 FY2012
11,400 11,200
Fuel Efficiency
Revenue Tonne Kilometres (RTKs)
The Qantas Group has achieved 3.4 per cent improvement in aviation fuel efficiency against the 2008/2009 baseline. Fuel saving targets have been agreed across the Groups flying businesses for 2012/2013 and activities such as international fleet re-configuration, fleet renewal and ongoing fuel optimisation activities will have a positive effect on fuel efficiency. Fleet Renewal and Fuel Efficiency In the long run, fleet renewal offers the greatest benefits to fuel efficiency by replacing older aircraft with new more fuel-efficient aircraft. Over the next 10 years, the Group is planning to invest in more fuel-efficient next generation aircraft, such as the Airbus A380, Boeing 787 Dreamliner and Airbus A320neo. On regional routes, the Group invests in Bombardier Q400, which consumes 35 per cent less fuel than similar-sized jet aircraft. The replacement of older aircraft with new, more fuel-efficient aircraft has resulted in a reduction in the average scheduled passenger fleet age since 2008.
REDUCTION IN FUEL CONSUMPTION1
~ 20% ~ 15% ~ 10%
A380
A320neo
B787
The Qantas Group continues to implement world-class fuel efficiency improvements, including Improved flight procedures like Mid Segment climb Average Fleet Age - Scheduled Passenger Fleet Optimised flight planning over individual sectors, including dynamic (Years) route planning and Flex Tracks 9.6 Required Navigation Performance (RNP) implementation in Brisbane, 9.2 resulting in smoother and shorter takeoff and landing Rigging (control surface) check optimization 8.8 Participation in the METRON air traffic management system (real time 8.4 capacity management) 8 Permagard application for better aerodynamics 2008 2009 2010 2011 Optimisation of potable water loads carried by planes Continuing reduction in onboard Auxiliary Power Unit use by increasing use of Ground Power Units, including the introduction of new lightweight ground power leads
1. A380 Compared with B744, A320neo compared to A320 (no sharklets) and B787 compared to B763. Fuel savings are approximate and based on manufacturer s information.
2012
22
RTKs (millions)
12,200
Sustainable Aviation Fuel The Qantas Group is focussed on developing more sustainable jet fuel to tackle the environmental and energy security issues associated with traditional fossil based fuels. Currently, Australia does not have a commercial source of sustainable aviation fuel. The Qantas Group has significant scale in fuel purchasing and aims to use that scale to influence the development of a Sustainable Aviation Fuel (SAF) supply chain within Australia. The Qantas Group is working hard to accelerate the development and commercialisation of alternative fuels that are more economically, socially and environmentally sustainable than fossil fuels. Qantas is a signatory member of the Sustainable Aviation Fuel Users Group (SAFUG), a global group of leading airlines and aviation companies working together with scientific agencies and leading environmental non-government organisations (NGOs) to accelerate the commercialisation of Sustainable Aviation Fuel. The Qantas Group wants to be at the forefront of the development of Sustainable Aviation Fuel in Australia to improve environmental outcomes and energy security. The global emergence of cleaner energy technologies has the potential to drive growth and create jobs. Taking a portfolio approach to Sustainable Aviation Fuel through assessing the most promising technologies and establishing partnerships with leaders in the field, the Qantas Group is focused on developing advanced jet turbine biofuel made from next generation biomass sources such as algae, municipal waste streams, waste tree oil and specially selected types of biomass energy crops which do not compete with food crops. Carbon Offset To emphasise the fact that environmental management is not a separate activity but an integral part of operations, the Qantas Group has integrated its carbon management into business as usual alongside other financial and procurement functions. As part of the carbon management process Qantas has entered into an agreement to purchase carbon credits from RM Williams Henbury Station property in Central Australia. Henbury Station property Qantas and RM Williams recently formed an exciting new partnership where the Group will purchase credits from Henbury Station a former pastoral property being regenerated to restore natural vegetation and remove carbon dioxide from the atmosphere. Credits from Henbury Station will support both the voluntary carbon offset program and, from 2013, be used to offset part of the Groups carbon price liability all while helping RM Williams conserve an iconic Australian landscape.
Australias First Commercial Biofuel Flights On 13 April 2012 Qantas operated Australias first commercial flights powered by SAF. The second generation Biofuel was produced by SkyNRG and derived from used cooking oil split 50:50 with conventional jet fuel. Its life cycle carbon footprint is approximately 60 per cent lower than that of conventional jet fuel. In addition, Qantas announced that it will conduct a feasibility study into the potential for an Australian SAF industry in partnership with Shell, the Australian Government, Australian Research Council and Alt Air. On 19 April 2012, Jetstar operated its first commercial SAF flights using the same SkyNRG Biofuel, the first low fares carrier in Asia Pacific to operate such flights.
Investment in the Qantas Group voluntary offset program has continued. The program, certified under the Australian Government National Carbon Offset Standard Carbon Neutral Program provides customers with the ability to fully offset the emissions of their flights. The program currently supports verified carbon standard certified renewable energy projects in countries such as China, Thailand, Cambodia and Vietnam (including wind farms, efficient cook-stoves, small hydropower developments and fuel switching projects). A recent addition to the program is a project that avoids emissions by restoring native forests in Tasmania on private land. In addition to the climate change benefits it has potential to protect biodiversity, including the potential to assist endangered species such as the wedge-tailed eagle and the Tasmanian devil. Thanks to customer contributions over the past five years the Qantas Group Carbon Offset Program has collected and invested over $8 million dollars and saved around 1.2 million tonnes of carbon. Qantas continues to commit to the Carbon Offset Program by offsetting all emissions from ground vehicles and employees' business flights. In addition Qantas facilitates the provision of detailed emissions data to Corporate Clients to enable those that have their own offset commitments to fulfil them accurately and completely.
1.2 million Tonnes

of Carbon offset by Customers through the Qantas Group Carbon Offset Program in the past 5 years.

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Utilities / Resources
In 2011/2012, the Qantas Group refreshed its utility reduction strategy replacing Group Targets with new, business unit specific targets that aggregate at a Group level to give electricity, water and waste diverted directly to landfill 2020 targets (set against a 2009/2010 baseline) of 10, 10 and 20 per cent respectively. The group has progressed well against these targets achieving a 2.9 per cent decrease in electricity, a 2.5 per cent decrease in water and a 13.5 per cent decrease in waste diverted directly to landfill. The reduction in waste diverted directly to landfill was primarily a result of significant reduction in 2010/2011 (11.8 per cent) driven by the initiative introduced in November 2010 to divert general waste in Sydney to an Advance Waste Treatment facility, to enable improved recycling of metals, plastics and organic waste.
20% 16% 12% 8% 4% 0% 2.9% Electricity 2.5% Water Waste Diverted Directly to Landfill 10% 10% 13.5% Progress Towards 2020 Targets (2009/2010 Baseline) 20%
In moving to Business Unit specific targets, an analysis was undertaken to determine the material consumers of resources across the business. In all resource areas Airports, Catering and Engineering were seen to be the material consumers and so remained key areas of focus in 2011/2012.
Electricity Consumption 21%
Water Usage 10%
29%
30% 19%
Direct Waste to Lanfill Contribution 8% 20% 7% Airports Catering Engineering Other
31%
19%
65%
40%
Electricity Motion sensors were introduced in Brisbane aerobridges to reduce lighting use Introduction of time-of-day usage meters across 72 sites which provide detailed analysis of electricity consumption through-out each day allowing inefficient practices to be identified and improved The Group continues to increase the efficiency of lighting by taking steps such as adopting LED technology
Water New water-saving dishwashers have been introduced in Catering facilities The introduction of Permagard, an aircraft coating that reduces draft and will assist to reduce water usage through reduced aircraft washing
Direct waste to Landfill Qantas continues to divert all general waste in Sydney to an Advance Waste Treatment facility which results in over 350 tonnes of waste being diverted each month to enable improved recycling of metals, plastics and organic waste. Organic waste separators have been introduced in Catering facilities Qantas has offered onboard recycling since 2009 on selected Domestic Economy services Qantas facilitates paper, cardboard and glass recycling in Qantas Club lounges within Australia and recycling programs in corporate offices Qantas has partnered with Closed Loop Recycling, an industry leader in environmentally sustainable packaging and recycling solutions. This partnership has delivered great results - for example, onboard paper cups are now made from 35% recycled paper Recycling bins have been installed in public spaces in all major Australian Domestic airport terminals Qantas has committed to the Australian Packaging Covenant Action Plan (July 2010 - June 2015), a voluntary initiative by Government and Industry to reduce the environmental effects of packaging.
Tri-Generation The Qantas Group is implementing the largest commercial tri-generation project in Australia which will significantly reduce the Groups energy consumption and carbon footprint. Two tri-generation power plants will be constructed in Sydney by energy company GridX to serve the Sydney headquarters, aircraft maintenance facilities, catering centre and T3 domestic terminal. The first plant is due to begin operating in September 2012 with the second scheduled for completion in the next six months. The Tri-generation plant will reduce overall energy consumption and carbon emissions by re-utilising the waste heat from gas fired generators to power site-wide cooling and heating. The project will have a 15 year term during which the Green House Gas emissions reduction is estimated to be 23,000 tonnes CO2-e per year, this equates to 6,000 cars off the road annually. In addition, the Star rating of Qantas Corporate Headquarters will be lifted by an anticipated 2 Stars.
$63,000 Worth of Stationery Recycled Qantas encourages employees to reduce, reuse and recycle. As a clear example of this message, in April 2012 a major Qantas building was decommissioned to allow for refurbishment of the corporate headquarters. Volunteer employees recovered over $63,000 of stationery, including over 90 reams of paper and $26,000 worth of printer toners. Care was taken to prevent unwanted items ending up in landfill with over $30,000 worth of unwanted folders being donated to charities such as Mission Australia and Reverse Garbage, as well as local schools. All other items were redistributed across the business. Qantas Sustainability Review 2012
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Noise
Qantas is committed to being a responsible member of the community, considering the environmental and social impacts of operations wherever the Group flies. Continuing to reduce the impact of aircraft noise on communities is a high priority and forms a significant component of the Group's Environmental Strategy. The aircraft noise standards for new aircraft are set by the International Civil Aviation Organisation (ICAO). Over time these standards have become more and more stringent with the most recent standards, Chapter 4, applicable for new aircraft types from 1 January 2006. The Qantas fleet is certified to Chapter 3 and also complies with the new Chapter 4 standards. The Group works with the aircraft manufacturers to continually improve the noise performance of the aircraft above and beyond the standards. The Qantas Group operates aircraft in ways that maximise noise reduction, without compromising safety. Qantas uses special take-off and landing procedures to minimise aircraft noise. In addition, pilots adhere to any additional airport-specific noise abatement procedures, (like noise abatement zones, engine run up restrictions and preferred runways or flight paths) that may be required.
Noise Abatement Departure - Qantas pilots reduce aircraft noise during departures by reducing engine thrust at a safe altitude. Noise Abatement Landing - The most effective way to minimise noise on landing is by flying a Constant Descent Arrival (CDA). This is where an aircraft does not need to level off on approach reducing the need for additional engine thrust and keeping the aircraft higher, both of which reduce the noise of the aircraft. Pilots also adjust deployment of landing gear and flaps in such a way as to reduce impacts on communities. Navigational Technology - Required Navigation Performance (RNP) uses the capability of Global Navigation Satellite System (GNSS) and flight management computers (FMC) to design more flexible procedures, including curved three dimensional flight paths. This technology allows flight paths that can avoid noise sensitive areas or share the noise between multiple flight paths to be designed.
Seeking better ways of managing aircraft noise is one of the many ways Qantas continues to develop strong relationships with communities. The Group believes that the best solutions emerge through collaboration. Qantas is a key participant in Community meetings around Australia. At these meetings, residents, the Airport and Air Traffic Control work to find noise improvements. Noise improvements should never compromise aircraft safety and should balance financial and customer impacts.
Key Environmental Statistics

Measure Available Seat Kilometres (ASKs) Aviation fuel consumption CO2-e emissions from aviation Group CO2-e emissions from aviation Australia CO2-e emissions from aviation Rest of world CO2-e per 100 RTKs (Group) Fuel per 100 RTKs (Group) Fuel per 100 RTKs (Qantas) Electricity (Australia) Water (Australia) Waste to landfill (Australia) Average fleet age scheduled passenger fleet Unit Million 000 Litres Tonnes Tonnes Tonnes Kilograms Litres Litres MWh 000 Litres Tonnes Years 2012 139,423 4,877,000 12,493,157 4,375,222 8,117,935 99.3 38.8 39.6 228,361 975,412 24,306 8.3 2011 133,281 4,790,143 12,270,660 4,255,706 8,014,954 99.1 38.7 38.9 231,763 971,151 25,149 8.6 2010 124,717 4,570,556 11,708,155 3,914,871 7,793,284 98.8 38.6 38.8 235,209 1,000,174 28,102 8.6 2009 124,594 4,695,383 12,027,918 3,963,472 8,064,446 40.1 40.1 242,410 1,045,896 29,838 8.8 2008 127,019 4,849,430 12,422,533 38.7 252,097 1,144,652 30,756 9.3 GRI Indicator EN3 EN16 EN16 EN16 EN5 EN5 EN5 EN3 EN8 EN22 -

25
CUSTOMER

Priorities CustomerExperience Maintainleadingsatisfactionratings forOTP,serviceandproduct initiatives IncreaseNetPromoter Score
ActionsTakenDuring2011/2012 Qantascustomersatisfactionhighest since2003 Qantasrecordedhighestlevelof advocatessince2007 JetstarAustraliahasseensignificant improvementininflightcustomer satisfaction JetstarAustraliadomesticandJetstar NewZealandachievedhighestlevelof advocatessincetrackingcommenced
Progress
Qantasachieved
Jetstarpartially achieved
OnTimePerformance(OTP) Qantastomaintainleadingdomestic OTPagainstmaincompetitor Jetstartoachieveleadingdomestic lowcostcarrierOTP
Qantaswasthemostontimemajor domesticairline1for2011/2012,and outperformedourmajordomestic competitor,VirginAustralia. Jetstarwasthesecondmostontime lowcostcarrierinthedomesticmarket
Qantasachieved Jetstarpartially achieved
1.Source:June2012BITREdata,Qantasmostontimemajordomesticairlineforjetoperationsgreaterthan10,000sectors.
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CUSTOMER
MULTIBRANDCUSTOMEROFFERING
TheQantasGroupunderstandsthatdifferenttravellershaveverydifferentneedsandvalues.TheGroupsmultibrandmodel isdesignedtogivecustomerstheexperiencetheydesire,witheachbrandplayingaveryspecificrole:
PremiumfullServiceairlinefocusedon Businessandpremiumleisuretravellers
AustraliaspremiercoalitionLoyalty program
Lowcostcarrierfocusedonpricesensitive travellers
SafetyisalwaysourFirstPriority Exceptionalendtoendcustomer experience Unrivalleddomesticnetworkandaccess toanextensiveglobalnetwork Leadingdomesticnetworkfrequency Leadingdomesticpunctuality RecognitionforLoyalty Extensivepartnernetwork Over500partnerstoearnpointswith Awiderangeofwaystoredeempoints, includingabilitytoaccessanextensive flightnetwork Increasedwaystoberewarded Recognitionforlevelsofloyalty SafetyisalwaysourFirstPriority Unwaveringcommitmenttobeingalow faresleaderandacommitmenttolowest costtoenabledeliveryoflowfares Hasslefreeandenjoyablecustomer experience Extensivenetworktomostpopular leisuremarkets Consistentlydeliveronschedule
SAFETYISALWAYSOURFIRSTPRIORITY
SafetywillalwaysbetheQantasGroupsfirstpriorityandisattheheartofeverythingtheGroupundertakes. ThecommitmenttoSafetyastheGroupscorecommitmentisdemonstratedthrough Worldleadingintegratedmanagementsystem Proactiveengagementwithregulatoryandindustrybodies GroupwideBusinessResilienceframeworkandculture Safetypriorityandcapabilityproven SafetyistheQantasGroupsfirstpriority.AdedicatedboardcommitteehasoversightofsafetygovernanceandtheQantas GroupsSafetyManagementSystemscoversallaspectsofsafety,health,environmentalandsecurityperformance.Ensuring consistencyacrosstheGroupinsafetymanagementandlegislativecompliance,itisacknowledgedasabestpracticemodel intheaviationindustry. TheGroupworkscloselywiththeCivilAviationSafetyAuthority,AustralianTransportSafetyBureauandinternational regulatorsoncompliancematters,theintroductionofnewtechnologyandprocesses,andinvestigationsintosafety occurrences.Aswellasmeetingallregulatoryrequirements,theGroupencouragesemployeestoreportoperational incidentspromptlyandopenly.
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QANTAS
QantasisAustralia'sleadingpremiumairlineanditsgoalistobethe bestforglobaltravellers.
RecentAwards July2012BestDomesticAirline(NationalTravel IndustryAwards) July2012WorldsBestPremiumEconomyClass (Skytrax) July2012WorldsBestFirstClassLounge February2012BestFirstClassCellar(CellarsintheSky Awards
Qantasputsthecustomeratthecentreofeverythingwedoand aimstogivecustomersmorechoiceandflexibilitywhenthey choosetofly.
Qantasiscommittedtoprovidingexceptionalcustomerserviceso thatcustomersknowwhattheycanexpectwhenevertheychoose toflyonaQantas(QF)codedservicefromanywhereinAustralia.
ExceptionalCustomerExperience
ThestateoftheartQantasCentreofServiceExcellenceprovidesQantaswithadedicatedstageforserviceexcellence learninganddevelopment.In2012,7,000cabincrewattendedthefirstphaseofintensivecustomerservicetraining(in additiontostandardtraining).InFY13allQantasfrontlinestaffwillundergothistrainingwithmanystartingphase2.In additiontheQantasservicecultureprogramisunderwayinvestinginempoweringandenablingQantaspeopletodeliver greatcustomerservice.
Qantasiscontinuallyinvestinginaircraft,product,serviceandinnovativetechnologytoprovideanexceptionalexperience forcustomers.AcrossitsnetworkQantasstrivestosetabenchmarkforpremiumendtoendcustomerexperience:
PreTravelInformation Online&MobileCheckIn
Availableonqantas.com,includingtravelwarnings,visas,health,departuretaxandconditionsofcarriage Allowscustomerstoselectseatsandprintboardingpassesfrom24hoursbeforetheirflight Availableforallcustomersfromtimeofbooking,complimentaryforDomesticflightsandforeligiblecustomers travellingoninternationalflightsincludingSilver,GoldandPlatinumFrequentFlyers.Forothercustomers travellinginternationally,seatsincludingexitrowscanbeselectedforafee. Domestic International AvailableatSydneyInternationalTerminaland AucklandAirport Checkinonlineorattheairport,includeddedicated premiumcounters AccesstoFirstandBusinessloungenetworkincluding theflagshipFirstLoungesinSydneyandMelbourne AllFirstandBusinessloungesprovideprivatemeeting roomswithteleconferencingandITfacilities. International 14privatesuitesincludingfullyflatextrawidebed, mattress,17inchIFEscreen,designeramenities& pyjamas. FullyflatSkybedsleeperseat,largeinarmscreen, designeramenitiesandpyjamas. Extrawiderecliningseatwithadditionallegroom,large entertainmentscreenandselfservicesnackbar. Ergonomicallydesignedseatwithfootrestnet, individualseatbackentertainmentscreenandselfserve snackbar. Ondemandaccesstomovies,television,music,audio books,interactivegamesanddestinationguides. MenusdesignedbyrenownedAustralianchefNeilPerry andawardwinningfinewinesinFirstandBusiness.
Preflight
AdvanceSeatSelection
QantasValetParkingand QantasDrive Onthe Ground CheckIn Lounges QantasMeetingRooms
Customerscandropofftheircarorbookalimousine toandfromselecteddomesticairports Faster,SmarterCheckindeliversspeedandease throughtheairportwitharangeofcheckinoptions QantasClubsandBusinessLoungeswith complimentaryfood&beveragesandbusiness facilities ProvidingbusinessmeetingandITfacilitiesin selecteddomesticterminals Domestic
First
SpaciousleatherseatsinBusinessonournextgen B737800s andrefurbishedB767s.Skybedonselected coasttocoastflights. AwardwinningIFEprovidedonallflights.IndividualIFE availableonselectedflights. InflightIFEonnextgenB737800s andQStreamingon refurbishedB767s. Premiuminflightserviceincludingfullmealand beverageselection.Complimentarybeveragesafter 4pmweekdays.
Business Inthe Air PremiumEconomy Economy InflightEntertainment FineDiningandWine
Postflight
CustomerCare
Adedicateddepartmentrespondstomorethan90,000 itemsofcorrespondenceeveryyear.

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CustomerExperienceHighlights QantashighlightsacrossDomesticandInternationaloperationsin2011/2012include: Faster,Smarter,CheckIn QStreaming Lounges WithFaster,SmarterCheckincustomers InFebruary2012Qantascustomers Qantascurrentlyhas53loungesacross canbreezethroughtheairportwitha werethefirstintheworldtoexperience theworld,including11Regionallounges rangeofcheckinoptionsdesignedto QStreamingsgroundbreakinginflight andaccesstoanadditional14 suitthecustomerneeds. WIFIentertainmenttechnology associatedlounges. availableonboardthededicatedBoeing Platinum,GoldandSilverFrequent 767300(VHOGH)acrosstheQantas OverthepastfiveyearsQantashas domesticnetwork. openednewflagshipFirstLoungesin FlyersandQantasClubmemberscanuse their Qantas Card for an award winning SydneyandMelbourne,anewBusiness airport check in experience. All Qantas The wireless technology provides LoungeinHongKongandupgradedits can customers with a Q Bag Tag passengers with over 200 hours of BusinessLoungesinSydney,Melbourne, experienceaquickandeasybagdrop. entertainment,streameddirecttoiPads CanberraandPerth.Qantashasalso Whileothertravellerscancheckinand suppliedbyQantaswhileinflight. upgradeditssharedFirstandBusiness printtheirboardingpassandbagtagat loungeinBangkokandNarita. thecheckinkioskforaseamlesscheck Followingthesuccessofthispilot, inandbagdropexperience. QStreamingwillberolledouttoall16 InAugust2011,Qantasannounceditwill refurbishedB767s. constructanewFirstLoungeand BusinessLoungeinLosAngelesaswell Faster,SmarterCheckinisnowavailable asinvestmentinnewLoungesin inSydney,Melbourne,Brisbane,Perth, SingaporeandHongKong. AdelaideandCanberra,whilesomekey elements are available at other Qantas andQantasLinkports.InDecember2011 B767Refurbishment stageoneoftheinternationalrollout madetheQCardReadertechnology FromOctober2012,QantasfirstrefurbishedB767willenterservice. availabletransTasmanwithSydney, Wevelistenedtoourcustomersandtherefurbishmentprogramwillrefreshthecabin AucklandandWellington. interiorswithacontemporarydesignthatincludesleatherseatsinBusinessandanew lookandfeelinEconomy. *WinneroftheTechnologycategoryin AllrefurbishedB767swillincludeQStreamingforallcustomers.Therefreshwill the2011AirlineStrategyAwards significantlyenhancethecustomerexperienceandall16OGseries(GE)aircraftare plannedtobeinservicepriortoApril2013. RefittedInternationalAircraft InflightConnectivity BoeingB737800s InAugust2012Qantasintroducedits InMarch2012,Qantascommenceda TheQantasGroupnowhas60B737 seventhnewlyfittedB747toits pilotofinflightconnectivityontheA380 800sofwhich22featureon internationalnetwork,offeringmore offeringpassengerstravellingbetween demand,touchscreeninflight customersanewinflightexperience. AustraliaandtheUnitedStatesaccessto entertainmentfromPanasonicfor theInternetandemailsinthesky.The allpassengersandspaciousseats, ThenewlyfittedB747featuresQantas pilotisavailableonsixQantasA380sfor includingleatherseatsinBusiness. flightsbetweenSydneyandLosAngeles A380styleseatsandPanasonicon Another10nextgenerationB737 andMelbourneandLosAngeles.Qantas demandinflightentertainment.The 800swilljointheQantasfleetinthe is the first airline in the world to offer ninth and final B747 refitted aircraft is by November. this service on direct flights between expected to be in service next18months. Inaddition,all12A380swillundergoa AustraliaandtheUS. reconfigurationprogramproviding TheBoeingSkyInterioraircraft seatstomeetcustomer additional Theconnectivityservice,providedby utilisethesamedesignlanguageas demand.Theinvestmentinthefleetis OnAir,usesInmarsatsSwiftBroadband theB787interior,featuringenlarged customerfocusedandisaimedatdriving andglobalsatellitebasedconnectionsto windowsurrounds,acontemporary customeradvocacy. transferdatafromthepassengersinthe coloured cabininteriorandLED aircraftandtheground. mood lighting toenhancethesense ThenewlyfittedB747aircraftare of spaciousness. Theeasiertouse currentlyoperatingonlonghaulPacific Thepilotisexpectedtoextendtoother pivotbinswillprovidemoreroom A380destinationsinlate2012asQantas routesincludingNewYork,LosAngeles, assessesopportunitiestocontinuethe DallasandSantiago. forcabinbaggage,whilenewLED serviceinthelongterm. readinglightswillprovideincreased comfort.
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CustomerSatisfaction
Qantasaimstodelivercustomersatisfactionthrougha seamlessendtoendexperiencebasedonoperational excellence,airportandaircraftinvestmentandworldclass catering.
CustomerExperienceExcellence OntimePerformanceisatitshighestcustomer satisfactionlevelintwoyears Qantashasachieveditsbestcheckinresultsin fiveyears,thankstoFaster,SmarterCheckIn,and thehelpfulnessandavailabilityofgroundstaff CabinCrewserviceachievedarecordfivemonth periodofveryhighlevelsofcustomersatisfaction. Thisresulthasbeenassistedbyrecentinvestment inintensivecustomerservicetraining(ontopof standardtraining),withover5,000crew participating Baggagedeliveryisatitshighestsatisfactionlevels since2004 Increasedcustomersatisfactionwithinflight entertainment,thankstothenewQStreaming iPadentertainmenttechnology Highestnumberofcustomeradvocatessince measurementofadvocacycommencedin2007
In2011/2012Qantassatisfactionratingsreachedtheirhighest levelssince2003.Satisfactionresultswereconsistentacrossall customerfacingareasofthebusiness.
NetPromoterScore
QantascontinuestotracktheNetPromoterScore(NPS)to determineadvocacyfortheairline.In2011/2012Qantasalso recordedthehighestnumberofcustomeradvocatessince measurementofadvocacycommencedin2007. ClosedLoopFeedback
QantascontinuestoembeditsClosedLoopFeedbackprogram acrossthecustomerexperienceelementsofairport,lounges andinflightserviceinordertoallowdirectcommunication betweencustomersandfrontlinemanagersandsupport continuousimprovement.
QantasFrequentFlyersareinvitedtoparticipateintheClosed LoopFeedbackpanelandprovidefeedbackeverysecondtime theyflywithQantas.
Thepanelcurrentlyconsistsof12,700QantasFrequentFlyersrangingfromBronzetoPlatinumOnestatuswiththePanel completingaround900surveyseachweekapproximately85%domesticand15%international.Surveyresultsand customercommentsareimmediatelyavailabletofrontlinemanagers,enablingthemtodiscussthisfeedbackwiththeir teamstomanageanyperformancegaps.Whatsmore,theycanspeakdirectlywiththecustomersprovidingthefeedbackto helpresolveparticularissuesinatimelymanner.Inthisway,ourfrontlinemanagersaregivenmoreownershipofthe customersexperience.
TheClosedLoopFeedbackresultsandcustomercommentsareprovidedacrossthebusiness,inparticulartoareas responsibleforthedesignanddevelopmentofthecustomeroffering,sotheycanfocustheireffortsonelementsthatwill drivecustomeradvocacy.
Care Customer Qantas iscommittedtolisteningtowhatcustomersaretellingusand respondingtotheirneeds.Ultimately,Qantaswantitscustomersto becomeadvocatesbutthisisonlypossiblebydeliveringthehighest standardsofcareandservice. Qantas dedicatedCustomerCaredepartmentaimstomaximisecustomer satisfaction,retentionandrecoveryacrossQantasAirlinesandensure continuousimprovementacrosstheendtoendcustomerexperiencewith theintentionofmaximisingcustomersatisfactionandloyalty.Theteam focusesonproactiveservicerecoveryinitiativesaimedatretaining customerloyaltyandsolvingserviceissuesourcustomersraise. Asademonstrationofthiscommitment,followingthegroundingofthefleetinOctober2011,Qantasannouncedarangeof compensationmeasuresforimpactedcustomers,includingtravelvouchersandreimbursingcustomersforaccommodation andoutofpocketexpenses.Additionally,QantasFrequentFlyerswereofferedadditionalpointsbasedontheirtierstatus andmemberswhoweredirectlyimpactedbyindustrialactionalsoreceivedauniquegiftorexperience,suchasalounge invitation,complimentarymembershiptoepiQurebyQantasFrequentFlyer,avoucherforQantasValetorQantasDrive,ora complimentaryQBagTag,dependingontheirtierstatus.
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LeadingNetwork AsAustraliaslargestdomesticairlineQantasisabletoofferanunrivalleddomesticnetwork.Inaddition,Qantasoffersthe largestregionalfleetandnetworkinAustraliathroughitsdedicatedregionalairline,QantasLink.Asamemberofthe oneworldGlobalallianceandthroughkeyalliancepartnershipsQantasisabletoofferanextensiveglobalnetwork. Qantasisdedicatedtomaintainingthispositionbystrengtheningitsnetworkonkeybusinessandpremiumleisureroutes, growinginregionalareas,includingtheresourcesectorandmaximisinggatewayandcarrieroptionsthroughkeyalliance partnershipsinternationally. LargestDomesticairline LargestRegionalairline QantasInternational Bestforglobaltravellers Operatingover2,100 Operatingover2,400 flights/week flights/week Gatewaystotheworld 17mpassengersannually 5mpassengersannually GrowinginAsia Buildingastrong,viablebusiness Keynetworkhighlightsduring2011/2012include: QantascommencedflightstoSantiago,oneofLatinAmericasmaingatewaysandhomeportofQantasoneworld partnerLANAirlines QantasIncreasedfrequencyofservicesbetweenSydneyandDallas/FortWorth,hometoQantasoneworldpartner AmericanAirlines QantasextendeditsA380networktoincludeHongKong,akeymarketforbothbusinessandleisuremarkets QantasLinkcelebratedthearrivalofanewnextgenerationBombardierQ400whichwilldeliversignificantnetwork enhancements Tosignificantlyboostproduct,serviceandscheduleofferingthroughoutregionalQueensland,QantasLinkcommenced Boeing717servicesonanumberofkeyregionalroutes,introducedFokkerF100jetservicesbetweenBrisbaneand Emeraldandincreasedcapacityonkeyservices Since30June2012,QantashasalsoannouncedincreasesinservicesbetweenMelbourneandTasmaniaandalso increasesinservicesbetweenAdelaideandCanberraandMelbourneandCanberra. LeadingDomesticPunctuality
OnTimePerformance
OntimeperformanceisoneoftheGroupsmostimportantoperationalmeasuresandhasasignificantimpactonefficiency, cost,customerexperienceandcustomersatisfaction.
Qantas wasthemostontimemajordomesticairlinefor2011/2012,andoutperformedourmajordomesticcompetitor, This operational measure isof especially important forQantas Airlines and QantasLink,was whose services are targeted atpremium Virgin Australiain eightout 12months oftheyear. Qantas ontime performance impacted in August, September customers. byindustrialactionandthegroundingofthefleet. andOctober On time arrivals forQantas, QantasLink andJetstar all improved from 2010/2011. Qantas consistent ontime performance Qantas was themost ontime majordomestic airline for 2011/2012, and outperformed our majordomestic competitor, has contributed to Qantas thehighest level of domestic customer satisfactioninthree years. impactedby Virgin Australia in nine outreaching of12months oftheyear. The months Qantasunderperformed where those industrialactionandthegroundingofthefleet. Loyalty isRewarded
QantasFrequentFlyerisAustraliasleadingcoalitionloyaltyprogramallowingQantascustomersmoreflexibilityand varietyinthewaytheyearnpointsandarerewardedfortheirloyalty.
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QANTASFREQUENTFLYER
QantasFrequentFlyer(QFF)isAustraliaspremiercoalitionloyalty program.Withover8.6millionmembers,representingmorethan50% householdpenetrationinAustralia,QFFmembershipcontinuesto grow. PartnerNetwork
QFFhasover500earnpartnerswhopayQFFtoissuepointsto memberswhenmemberspurchasepartnerproductsorservices, creatingloyaltytothepartnerandrewardingthememberforthat loyalty.Thecombinationofawidepartnernetworkforearning,anda largememberbase,makestheQFFprogrammorevaluabletoboth partnersandmembers.
In2011/2012,QantasFrequentFlyer continued toimprovetheprogramtoincreasethebenefits availabletoourmostregularcustomersand deliveratrulygloballoyaltyproposition. Theestablishmentofanew,premium membershiptier,PlatinumOne,hasaddeda newpointsearningincentiveandpromises uniquelevelsofserviceandcare.
QFFmemberscanusetheirpointsforawiderangeofawards, includingAwardflightsonQantas,Jetstarand24partnerairlinesand theiraffiliates,upgradesoneligibleQantasflights,andover3,300 productsandvouchersinAustraliaand1,300inNewZealandthrough theQFFStore.
EarningPoints
MemberscanearnpointswithawiderangeofcoalitionpartnersincludingQantasand24airlinepartnersandtheiraffiliates, 15leadingcreditcardissuers,theWoolworthsGroup,Optus,hotels,carrentalcompanies,restaurants,entertainersand otherretailers.
Fly Shop Pay Connect Stay Hire Eat
TraveltheworldwithQantas,oneworld andourotherairlinepartners Earnpointsonyoureverydayessentialsatparticipatingsupermarkets,fueloutlets,liquor,electronicsanddepartment stores Useacreditcardlinkedtotheprogramtoearnmorepointsonyoureverydayspend NowyoucanearnpointsforeverydollarspentonmostOptuspersonalandsmalltomediumbusinessservicesincluding mobile,fixedlinephone,broadbandandarangeofbundles EarnpointswhenyoustayatthousandsofhotelpartnerpropertiesinAustraliaandoverseas EarnpointswithcarrentalsinAustraliaandoverseaswithourcarpartners Earnpointswhendiningatover200restaurants,barsandcafesaroundAustralia Earnpointsonretailandentertainmentincludingtheatreandconcerttickets,vehiclepurchases,tyres,tintingandflowers Earnpointsonyourtravelneedsincludingholidaypackages,dutyfree,foreignexchange,insuranceandvaletparking Earnpointsonarangeofbanking,investment,trading,andreal estateservicesplusonyourprintingandstationeryneeds
More
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RedeemingPointsincludingaccesstoanExtensiveFlightNetwork QFFhasawiderangeofawardsavailableforredemption.ClassicAwardflightsonQantas,Jetstar,oneworldandotherairline partnersarethetraditionalfrequentflyerawardseats,offeringthebestvaluewithlimitedavailability.ClassicAwardscanbe intheformofoneway,returnormultidestinationflightsaswellasflightupgrades.
AnySeatAwardswereintroducedinJuly2008tooffermorechoiceandflexibilitywhenusingpointstobookanAwardFlight. PointscanbeusedforaQantasorJetstarAnySeatAwardonanyavailableseatonanyQantasorJetstarflightwithaQFor JQflightnumberandforcombinedtravelonover40selectedairlinestoover100additionaldestinations.Aslongasthereis aseatavailableforsale,thereisaredemptionoptionunderQantasandJetstarAnySeatAward.Thepointsneededfor flightsincludesurcharges,feesandtaxes,andvarydependingontheflightchosen.Memberscanuseallpointsorchoosea Points+Payoptionthatsuitsthem.
TheQantasFrequentFlyerStorehasanextensiverangeofqualitymerchandise,vouchersandunforgettableexperiences. Memberscanchoosefrommorethan3,300productsandvouchers,includingdeliveryinAustraliaandinNewZealand.
QantasandPartnerClassicAwards MemberscanusepointsforaClassicAwardtomorethan50destinationsaround Australiaand625destinationsaroundtheworld. QantasandJetstarAnySeatAwards MemberscanusepointsforanyseatonanyQantas(QF)orJetstar(JQ)flightaslong asthereisaseatavailableforsale.Thefareincludestaxes,feesandcarriercharges. FlightUpgrades Whilesomeupgraderequestsmaynotbeconfirmeduntilafewdaysbefore,oronthedayoftravel,flight upgradesareagreatwaytomakethemostofpoints.PointsareonlydeductedifaFlightUpgradeAwardisconfirmed. QantasClubMembership MemberscanusepointstojoinorrenewaQantasClubmembershipforthemselves,apartner oraneligiblefamilymember. Qantas Frequent Flyeronline store MemberscanusepointsattheQantasFrequentFlyeronlinestore.Thereareover3,300waystoredeempointsfrom cookwaretoiPods,TVstotoys,sportsgeartovouchersfromleadingretailers.ItisalsopossibletousePoints+Payfor selecteditems.
Flightsand Flight Upgrades
Auto rewards
MemberscanchoosetooptinAutoRewardsandeverythreemonths,theywillautomaticallyreceiveaWoolworthsgift cardinthemail,uptothevalueof$20.Attheendofeachthreemonthperiodamemberspointsbalancedetermines whichgiftcardtheyreceive.
IncreasedWaystoBeRewarded
QFFmadeseveralenhancementstotheprogramduring2011/12including: Improvementstotierretention,upgradeprocessandtheintroductionofPlatinumOne ThelaunchofOptusasanearnpartneraswellasnewcardproductsfromBankwest,JetstarMastercardandQantasStaff CreditUnioncard AnewlookQFFstorewithawiderrangeofproducts RecognitionforLevelsofLoyalty
QantasFrequentFlyerrewardsmembersthemoretheyfly.Theprogramconsistsoffourlevelsofmembershipabovethe bronzeentrylevelSilver,Gold,PlatinumandPlatinumOne.Eachmembershiphasparticularprivileges.Thehigherthe membershiplevelthegreatertheprivilegesandthemorepointsmemberscanearn.
Statuscreditsdetermineamembersfrequentflyermembershiplevel.Everytimemembersflyoneligibleflights,status creditsareallocated.Assoonasmembershaveearnedtherequiredstatuscredittoqualifyforthenextmembershiplevel, andprovidedthememberhastravelledaminimumoffoureligibleQantas,QantasLinkorJetstarflightsduringthe membershipyear,memberswillautomaticallymoveuptothenextmembershiplevel.Statuscreditsaretotallyseparate fromQantasFrequentFlyerpoints,theyaresimplyameasureofhowoftenandhowfaramemberfliesoneligibleairlines.
QantasFrequentFlyerssuccessisbuiltondeepconsumerknowledgewhichenablesthe strategyofengagingcustomersthroughtheirspecialinterests.
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JETSTAR
TheJetstarGroupisanetworkofvaluebasedJetstarbrandedcarriers providingalldayeverydaylowfaresacrossAustralia,NewZealandand theAsiaPacificregion. JetstarhascreatedaCustomerGuaranteetoallowcustomerstoknow exactlywhattheycanexpectfromtheairlineandthehighlevelof customersatisfactionthatJetstarstrivesforineverythingtheydo. Commitment toLowFares Jetstars missionistoofferallday,everydaylowfarestoenablemore peopletoflytomoreplaces,moreoften.Aspartofthiscommitmentto offeringcompetitivefaresJetstarcontinuestoofferitsPriceBeat Guarantee. Jetstarcustomersonlypayforwhattheyneed.Customerscanchoose betweentwotypesoffaresEconomyorBusiness(onselected internationalflights).Onceafareisselected,customershavethe optiontoaddoncheckedbaggageand/orabundleofextras,whichcan includeseatselection,inflightproducts,fareflexibility,loungeaccess andQantasFrequentFlyerpoints. CommitmenttoLowCost Jetstars operationalexcellenceandinnovationenableittocontinueto bethelowestcostairlineinthedomesticairline.ThisenablesJetstarto continuetoofferthelowestfarestopricesensitivetravellers. Hassle freeandEnjoyableCustomerExperience ThroughinnovationandcuttingedgetechnologyJetstaroffers customersarangeofservicestomaketheirexperienceashasslefree andenjoyableaspossible.RecentinnovationhasincludedSMS boardingpasses,CallcentrechatandSkypeintegration,newpayment methodssuchasPayPalandnewproductsandservices,forexample iPads.iPadsallowviewingofthelatestreleasemovies,TVshows,music andalineupofthelatestgenerationgames,emagazinesandebooks, allenhancedbytheiPadshighresolutionscreenandpremiumsound. An ExtensiveLeisurefocusedNetwork The JetstarGroupisthelargestlowcostcarrierintheAsiaPacificby revenue andisoneofthefastestgrowingairlinesintheAsiaPacific region. This allowsJetstartoofferanextensivenetworktopopular leisure destinations inAustralia,NewZealand,andAsia.Byfurther buildingonJetstarsstrongbandthisnetworkissettoexperience furthergrowth.In2011/2012JetstarJapanwaslaunchedandthe formationofJetstarHongKongwasannounced.
JETSTARAWARDS

AirtravellersvotedJetstarAirwaystheBest LowCostAirlineinAustralia/Pacificandatop threeGlobalLowCostAirlineinSkytraxs AnnualWorldAirlineSurvey.
TheWorldAirlineSurveybySkytraxisthe largestairlinepassengersurvey.Thisyears surveyinvolvedmorethan18millionindividual respondentsfrom100differentnationalities.
SingaporebasedJetstarAsiaalsofaredwell, makingthelistofTop10GlobalLowCost AirlinesandTop10LowCostAirlinesin Australasia.
TheseawardsreflecttheGroupwidefocuson deliveringconsistent,qualityservicesacross theregionatapricepointthatmeansmore peoplecanaffordtofly.
LargestLowCostCarrierinAsiaPacific
TheJetstarGroupisthelargestlowcost airlineintheAsiaPacificbyrevenueand hasflownover75millionpassengerssince itlaunchedin2004 During20102011,theairlinecarried almost20million(18.8million)customers, makingJetstarthefastestgrowingairline intheAsiaPacifictoreachthismilestonein sevenyearsofflying TheJetstarGrouphasgrownfrom providingemploymentto400peoplein 2004tomorethan7,000acrosstheAsia Pacifictoday CollectivelytheJetstarGroupoffersover 3,000flightsaweektoaround60 destinationsin16countriesandterritories acrosstheAsiaPacificregion TheJetstarGrouphasafleetofaround90 aircraft
JetstarJapan In2011/2012theQantas Group,JapanAirlinesCo. Ltd(JAL)andMitsubishi Corporationannounced thelaunchofJetstar Japanadomesticairline isbringingmorelow airfarestocustomersin Japan.
JetstarHongKong In2012ChinaEasternAirlinesandthe QantasGroupenteredanewstrategic alliancetobringAsiasleadinglowfares airlinemodeltoChinawiththecreationof JetstarHongKongthefirstlowfaresairline basedinHongKong. JetstarHongKongwillserviceseveralshort haulroutesinAsiaincludingGreaterChina, Japan,SouthKoreaandSouthEastAsia.
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ConsistentlyDeliveronSchedule Jetstarunderstandstheimportanceofgettingpassengerstotheirchosendestinationontime,everytime.Jetstarstrivesto operateeveryflightandmeeteveryarrivaltimeshowninourpublishedscheduleandtodosowithoutcompromisingsafety. JetstarisinvestingintechnologytoimprovesafetyandontimeperformancebyequippingitsfleetofA320andA321aircraft withthelatestsatellitelinkedlandingandnavigationsystem.Thisnewnavigationaidreducesthetimespentcirclingdueto badweather,whichhelpspassengersarriveontimeandcutsfueluse. JetstarbecomethefirstAustraliancarriertoofferacompleteandconsistentselfservicecheckinofferingthroughitsentire domesticnetworkviathreeselfserviceoptions.ForflyerstravellingonadomesticJetstarserviceinAustraliaandNew Zealand,optionsinclude: WebCheckin AirportSelfServiceKiosks(nowavailableateveryairport) SMSBoardingPass Theseoptionsareprovidedinadditiontothetraditionalmethodofcheckinginatthecounter.Tomaketheprocesseven easier,JetstarhasalsolaunchedAutomaticCheckin,byallowingcustomerstopreenrolforcheckinandreceiveeitheran SMSboardingpassorboardingpassviaemail24hoursbeforeaflight.Removingthecheckinprocessaltogetherisanother exampleofaJetstarinnovationimprovingtheairtravelexperienceforitscustomers. LoyaltyisRewarded CustomerstravellingwithJetstarhavetheopportunitytoearnQantasFrequentFlyerpointsandStatuscreditsaccessibleon allbundledfares.QantasFrequentFlyerstravellingwithJetstaronStarterfarewithaPlusorMaxbundleandaBusinessfare withaBusinessMaxbundlecanearnQantasFrequentFlyerpointsandStatuscredits*,attheequivalentlevelasflyingon Qantas.(*TermsandConditionsapply).
Keycustomerstatistics
Australiandomesticontimedepartures QantasGroup QantasAirlines QantasLink Jetstar Australiandomesticontimearrivals QantasGroup QantasAirlines QantasLink Jetstar Australiandomesticcancellations QantasGroup QantasAirlines QantasLink Jetstar Units 2012 2011 2010 2009 81.1 80.8 83.7 76.8 80.4 81.0 80.9 78.2 1.7 2.6 1.1 0.9 2008 79.7 79.1 82.8 78.4 79.4 79.6 80.6 76.3 1.8 2.3 1.2 0.9 GRI indicator1 PR5
% % % % % % % % % % % %
80.1 84.4 77.7 76.6 79.1 83.4 75.3 77.6 1.8 1.7 2.0 1.6
80.4 83.8 78.5 77.1 78.9 83.1 74.8 77.3 1.6 1.5 1.9 1.4
86.2 87.7 86.8 82.1 85.2 87.4 83.7 82.9 0.8 0.8 0.7 1.1
PR5
PR5
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PEOPLE

Priorities DiversityTargets: 35%ofSeniorExecutiverolestobeheld bywomenby2015 40%ofSeniorExecutiverolestobeheld bywomenby2018

ActionsTakenDuring2011/2012 Astrategicfocusongenderdiversitywiththe establishmentoftheQantasGroupDiversity Council

Progress
OnTrack
TrainingandDevelopment: DevelopmentofTalent Developmentofemployeescommencing careersatQantas
LeadershipandManagementCapability Modelupdated QantasGraduateDevelopmentProgram recruited26peoplein2011/2012

OnTrack
Listening,CommunicatingandSupporting Employees: ConductannualEmployeeEngagement Survey Continuedflexibilityinsupporting employees
QantasconducteditsannualEmployee EngagementSurveyandcontinuestoanalyse, planandactionfeedback Toenhancesupportprogramsofferedto employeestheQantasgrouppartneredwith ExpectAStartolaunchanewFamily Supportprogram
Achieved
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PEOPLE
93% TheQantasGroupemploysmorethan33,000 of Qantas Group employees, with 93% of employees located in Australia. employees arelocatedin Asat30June2012,theQantasGroupcommunitywas Australia madeupofpeoplewith102nationalities,whospeak51 languagesandarefrom157countriesoforigin. OrganisationalBehaviours OneofthebenefitsofworkingfortheQantasGroupisthediversityofrolesandtheopportunitiesavailabletoemployees. Whilewealldodifferentjobs,weallsharethesamecompanyvaluesandallcontributetotheultimatesuccessofthe business. UnderpinningthecompanysbrandvaluesaretheGroupsorganisationalbehaviourshowemployeesbehaveeverydayat work.Byadoptingthesebehavioursaspartofdailyroutinesweareexhibitingourbrandvalues.Wearealsodoingourpart tohelpachievetheQantasGroupvision,whichforQantasistobetheworldsbestpremiumairlineandJetstartheworlds bestlowfaresairline.
Safety Service Innovation Integrity Idemonstrateagenuinecommitmenttosafety IhaveacandoattitudeandIdelivermypartofthecustomerpromise IchallengethewaythingsaredoneandItakeownershipforfindingabetterway Iamopen,Ilisten,andIspeakhonestlyandrespectfully
CollaborationIworkwithotherstocreateawinningcultureandanenjoyableplacetowork
GroupPolicies TheQantasGroupCodeofConductandEthicssetsoutQantasexpectationsinanumberofareas,includingtreatingpeople withrespectandequalemploymentopportunity.InadditiontotheCodeofConductandEthics,theQantasGrouphas developedandimplementedanumberofformalpoliciesandstatementswhichsetouttheQantasGroupsvaluesand principles,anditsexpectationsinanumberofareas,includingPeoplerelatedpractices. Creatingaworkenvironmentthatsupportstheachievementofbusinessobjectives ThefuturesuccessoftheQantasGroupisunderpinnedbyitsemployeesbeingskilled,motivatedandsupportedtodogreat things.TheGroupaimstocreateaworkenvironmentthatsupportstheachievementofbusinessobjectivesandanongoing focusonbuildingcapabilityandmanagingperformancebothattheindividualandteamlevel. ThePeopleTeamskeyareasoffocusareInvesting,Recognising,Supporting,ListeningandCommunicatingwithourPeople, andthesearediscussedinthefollowingpages. Investing Recognising Supporting Listeningand Communicating

Training LeadershipCapability DiversityandInclusion PerformanceManagement
RecognitiononQ ExcelAwardprogram
Employeeassistance supportprograms
Creatingan environmentand culturewhichengages employees
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Investing
Training
TheQantasGroupsupportsandencouragespersonalandprofessionaldevelopmentofitsemployeesthroughidentifying talent,maintainingprofessionalqualificationsandsupportingemployeeswhowishtoundertakeapprovedexternaltraining andeducationcourses.
MandatoryTraining Qantashasdevelopedanumber ofmandatorytrainingcourses thatarerequiredtobecompleted byallemployeesoncommencing employmentandevery2or3 yearswhileemployedatQantas. Thistrainingenablesemployees todevelopanunderstandingof Qantas,itspolicyframeworkand workplacestandards.Mandatory trainingcomplianceismonitored throughabiannualself assessmentgovernanceprocess. RegisteredTrainingOrganisation AsaRegisteredTraining OrganisationQantasCollegeis abletooffernationally recognisedqualificationsand certificationpackagesaccording totheAustralianQualification Framework.Deliverymethods includeclassroom,workplace, onlineandblendedsolutions carefullychosentodeliverthe necessarylearningoutcomesto thebusiness.
QantasCollege QantasCollegeistheLearningand DevelopmenthubfortheQantas Groupandprovidesqualitytraining andadministrativesolutionsfor employees.TheCollegehas extensiveexperienceintheendto endprocessfrominitialneeds analysisthroughtoimplementation andongoingsupportand evaluation.TheCollegedesignsand deliversflexibleblendedandonline trainingcoursesforourindustry operations,supervisionand management,legislationand compliance.
QantasCentreofService Excellence TheQantasCentreofService ExcellenceisaA$10mstateofthe artfacilityprovidinganexperiential environmentforserviceexcellence learninganddevelopmentto enabletheGrouptoreaffirmthe importance of exceptional service. SpecialisedTrainingDays Certainareasinthebusinesshold ProfessionalDevelopmenttraining daystoallowforContinuing ProfessionalDevelopment.In 2011/2012boththeFinanceand Peoplecommunitiesofferedfull dayconferenceswithabroadscope oftechnicalandnontechnical learningsessions.Thesessions werefacilitatedbybothinternal andexternalsubjectexperts.
CrewTraining FlightandCabinCrewmustadhere tostringenttrainingstandards whichareoverseenbyFlight Training.TheprimaryroleofFlight TrainingistoensurethatCabinand FlightCrewaredevelopedtosustain ahighstateofproficiencyand readinesstooperateQantasaircraft inasafeandefficientmanner.The QantasGroupemploysworldclass instructorswhoarecapableof tailoringtrainingtoensurethateach traineehasthebestopportunityto succeed.TheFlightTraining departmentworkscloselywiththe CabinServicesandFlightTechnical departments,inadditiontoQantas maintainingacloseworking relationshipwithCASA,toensure thattrainingprogramsarerigorous, contemporaryandregulatory compliant. EngineeringApprenticeships QantasEngineeringoffersanumber ofindenturedmaintenanceand tradeapprenticeshipstoallowthe opportunitytoworkforaworld classorganisationwhileundertaking trainingtoachieveanationally recognisedqualificationinthe aerospaceindustry.Avarietyof apprenticeshipsareofferedacross variousmaintenancefacilitiesin areasincluding: AircraftTrades(Avionics, MechanicalandStructural) Electrical HeavyVehicleMaintenance
IntensiveCustomerService Training Inadditiontostandardtraining, Qantashasrecentlyheld intensivecustomerservice trainingfor7,000cabincrew, whichisresultinginagreat responsefromcrewand passengers.
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LeadershipCapability TheQantasGroup'sapproachtodevelopingourPeopleLeaders istofocuson constructiveleadershipcapabilities. Leadershipcapabilitiesareunderlyingcharacteristicsthatleadtosuperior performanceandincludebehaviours,qualities,attributesandtraitsthatenable leadersatalllevelstobesuccessfulandmeetbusinesschallenges.Theysupplement (butdonotreplace)thetraditionalfocusonacademicqualifications,technicalskills andexperienceprovidingaframeworkforassessinganddevelopingdeeperseated personalcharacteristics.
LeadershipCapabilityHighlights
Performanceanddevelopmentacrosstheleadershipcapabilitiesisfacilitatedby investmentanddevelopmentofleadership,feedbackandcoachingskillsforall managers. DiversityandInclusion
In2011/2012TheQantasGroup strengtheneditsleadership capabilitiesbyupdatingthe LeadershipandManagement CapabilityModel,introducinga consistentFrameworkapproach acrosstheGrouptoguide developmentandperformance improvement.Theframework consistsof15capabilities arrangedinto4clusters.
Qantastakesaholisticapproachtodiversityandiscommittedtoadiverseandinclusiveworkplace.Adiverseworkplace supportsQantasbusinessobjectivesanddeliverscompetitiveadvantagesandbenefitstocustomers.
DiversityispromotedatQantasthroughleadership,talentanddevelopmentprograms,flexibleworkarrangementsand recruitmentandselectionprocesses.
QantashasestablishedaDiversityStatementwhichisavailableintheCorporateGovernancesectionontheQantaswebsite.
InlinewiththerequirementsundertheASXCorporateGovernanceCouncilsCorporateGovernancePrinciplesand Recommendationswith2010Amendments(2ndedition)(ASXPrinciples),Qantasrecentlydevelopedandformalisedtargets forgenderdiversity.Thefollowinggenderrelatedmeasurableobjectivessupportinggenderdiversityhavebeenendorsedby theQantasNominationsCommittee:
LeadershipestablishaGroupDiversityCouncil,tobechairedbyanExecutiveCommitteemember ManagementRepresentationSeniorExecutivestargetsof: 35percentwomenby2015 40percentwomenby2018
Theprogressagainsttheobjectivesfromthe2011/12annualreviewisdetailedbelow: QantasestablishedaDiversityCouncilduring2012whichischairedbytheChiefExecutiveOfficerQantasDomesticand hasamembershipof10SeniorExecutives. QantasSeniorExecutivetargetof35percentwomenby2015isprogressing,havingincreasedto31.5percentin2012 (2011:29.9percent).
Inadditiontoreportingagainstthemeasurableobjectivessupportinggenderdiversitywhichhavebeenendorsedbythe QantasNominationsCommitteeinlinewiththerequirementsundertheASXPrinciples,Qantashasreportedondiversityin itsSustainabilityReportsince2007.
QantasalsoreportsonarangeofdiversityrelatedmeasuresintheannualSustainabilityStatisticsandNotescontainedinthe AnnualReport,includingagediversity,workplaceflexibilityandindigenousemployment.
PercentageofWomen 42% WomeninSeniorExecutiveRoles 32% WomenDirectorsontheQantasBoard 25% QantasAirwaysfemalegraduatesrecruited 62%
14% Percentageof Parttimeemployees

Thepercentageofparttimeemployees continuestoincreaseastheGroupseeksto provideenhancedworkplaceflexibility,whichis anattractiveofferingforsomeemployeesand providestheGroupwithanumberofbenefits, includingretentionoftalent.
5% Increasein IndigenousAustralian employees

AsaffirmedbytheGroupsReconciliationAction Plan,Qantasstrivestocreatemeaningfuland lastingopportunitiesforIndigenousAustralians tobuildupontheirexistingskillsandexperience andtobeanemployerofchoiceforAboriginal andTorresStraitIslanderpeople.
PerformanceManagement
Managingperformanceisacontinuousprocesswhichinvolvesobjectivesbeingset,performancebeingmonitored,the provisionofregularFeedbackandcoachingwithremedialactionbeingundertakenwhereappropriate.
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Recognition
ThereareavarietyofinternalrecognitionprogramsacrosstheGroupsuchasRecognitiononQ(RonQ).RonQwas launchedtocomplementtheexistingeXcelawardsprogram.RonQisawaythatanyoneintheQantasGroupcannominate theircolleagueswholiftbusinessresultsbyconsistentlydemonstratingexcellenceinthedeliveryofservicetocustomersor eachotherand/orasafeworkingenvironment.TheaimofRonQistofurtherassistQantasinrecognisingemployees displayingQantasbehavioursandvaluesandtoassistinbuildingamoreengagedworkforce. Theprogramhasallowedmorepeopletoberecognisedmoreoftenbyallowingcolleaguesandmanagerstoinstantlythank employees.RonQandeXcelworktogetherbyallowingRonQnominationstobeelevatedtoaneXcelnominationwhere anemployeesperformancehasbeenoutstanding. FamilyAssist In2011/2012theQantasGroup Supporting partneredwithExpectAStarand launchedFamilySupport,a TheQantasGroupcontinuestoprovideaseriesoffreeandconfidentialsupport programspecificallydesignedto servicesviatheEmployeeAssistanceProgram(EAP),whichhelpbalanceworkand assistAustralianbasedemployees life.Theseare: withchildrenaged018years, Free,confidential,independentcounsellingserviceforQantasstaffandtheirfamilies.Counselling LifeAssist elderlylovedonesandemployeesin servicesarerunbyanexternalproviderandcounsellorsarelocatedoffQantaspremises theleaduptoretirementand/orlife Practical child and elder care information and assistance including The Joey Club childcare services FamilyAssist availableinSydney,MelbourneandBrisbane afterwork.FamilySupportoffers Events,programsandresourcestoassiststaffandtheirfamiliesachieveahealthylifestyle HealthAssist childcaresolutions,usefulresources, Professionalassistanceifstaffhaveacriticalmoneyproblem articlesandtips.TheSeniorLiving MoneyAssist programoffersoptionsincluding Practicalsupportformanagersofstaffthatareexperiencingpersonalissuesordifficulties ManagerAssist emergencyandongoingagedcare,a Assistanceintheeventofatraumaticincident TraumaAssist seniorlivingsupportnetworkand accesstoinformativeandpractical resources.Theprogramalso ListeningandCommunicating providesusefulinformationfor EngagementSurvey employeesconsideringretirement orlifeafterwork. Qantascurrentlyconductsanannualemployeeengagementsurveyto: Provideemployeeswithanopportunitytovoicetheiropinionsandhaveasay CreatinganEnvironmentand onhowtomakeQantasabetterplacetowork CultureWhichEngagesEmployees UnderstandthelevelofengagedemployeesatQantasandidentifyareasfor improvement InayearwhereQantasexperienced Providesufficientinformationtoalloweachbusinessareatodeveloprobust disruptiveindustrialactionandthe engagementactionplansthatwilldriveashiftinengagementlevels groundingofthefleetachallenging Createabaselineformeasurementofmanagementsperformanceon employeeengagementenvironment employeeengagementacrossthebusiness isnotunexpected.
Engagementresults,areasoffocusandactionplanrequirementsareinitially communicatedbytheCEOandarethencascadedthroughQantasviathePeople LeadersForum,afulldayeventwhichconnectsover500Peopleleaderstwicea year.
Leadersarealsoprovidedaccesstotheirdepartmentalteamreportsviaanonline portal.Throughthistheycandeterminekeyareasoffocusforactionplanning specifictotheirdepartment,whileutilisingtheexpertiseoftheirLinePeople Representativestodrivefocusandshiftengagementrelevanttotheirgroup.
Asthebusinesschanges,wemust continuetokeepfocusedon buildingasustainablebusinessand makingQantasabetterplaceto work.
Survey Planning Survey Open Results Processing Report Release Actioning Results
TheGroupiscommittedtodoing thingsdifferently,tobringour peoplewithusduringthechange journey,andtomakeQantasa betterplacetowork.
ActioningResults MeasuringemployeeengagementthroughtheQantasEngagementSurveyisonlythefirststeptowardsimprovingemployee engagement.HowtheGroupactsontheinformationisthemostcriticalpartoftheengagementcycle.Theactivityof analysing,planningandactioningfeedbackisessentialtoimprovingengagement.
ThereareavarietyofapproachestodrivingengagementinitiativesthroughactionplanningacrosstheGroup,eachdivision andbusinessareas.Managersaresupportedthroughastructuredactionplanningprocesswhichiscomplementedby resourcesandtoolkitsaswellastheguidanceoftheirPeopleTeams.

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Communicating
PeopleLeadersForum
TheForumprovidesanopportunityfortheSeniorExecutiveCommittee(ExCo),includingtheCEOtocommunicatedirectly withover500peopleleadersinthebusiness.Forumsareheldtwiceayearandtheformatincludesanaddressfromthe QantasGroupCEO,businessupdatesfromtheExecutiveCommittee,andkeythemeswhicharerelevanttothebusinessat thatpointintime,forexampleleadingchange,introducingthenewadvertisingcampaigns,rollingoutGroupwideinitiatives includingactioningtheresultsofengagementsurveys.
ThePeopleleaderswhoattendthecourseareexpectedtosharetheirexperienceofthedaywiththeirteams,andtoraise awarenessofmaterialswhicharemadeavailableontheGroupsintranetfromtheForum,includingpresentations,videos, andtools.
InternalCommunication TheGroupsCorporateCommunicationsteamprovidesastrongfoundationforinternalcommunicationacrossthebusiness. Anumberofformatsareutilised,andstrengthhasbeengainedinaconsistentlookandfeel.Anexampleofsomeofthe internalcommunicationchannelsare:
QantasNews QantasNewsisamonthlynewsletter forQantasGroupemployees.Itis availabletoallemployeesworldwide
FridayFlyer FridayFlyerisaweeklyelectronic bulletinforQantasGroupemployees.It isdistributedtoemployeesworldwide everyFriday.FridayFlyeraimsto bothonlineandincolourprint.Qantas Newsaimstoprovidebalanced provideasnapshotofcurrentmajor coverageofbusinessandpeoplestories events,issuesandinitiativesaroundthe fromacrosstheGroup,acknowledging QantasGroup. achievements,performanceand communityinvolvement.Allemployees arewelcomeandencouragedto ` contributeitemsofinterestfor publicationinQantasNews.
EmployeeRoadshows TheQantasGroupCEOandtheExecutive CommitteedeliveremployeeRoadshow presentationsacrossAustraliaandkey internationalportsduringtheyear.The Roadshowsaredesignedtogive employeesanopportunitytohearfirst handinformationaboutQantas'current andfuturebusinessdirection,itsstrategy, financialresultsandmajorinitiatives. Employeesareencouragedtoask questionsoftheGroupCEOorExecutive Committeemembers.
IndustrialRelations Inordertopositionitselfforfuturechallengesandtoavoidcompromisingthelongtermsustainabilityoftheorganisationthe Groupseekstodeliverfairandsustainablewagesettlementsforitsemployeesandmaintainflexibilityforthecompany.48 collectiveagreementsareinplacewithemployeesandunionsacrosstheGroup.
AsatSeptember2012,theGrouphasaworkplacedeterminationinplaceforboththeAustralianLicensedAircraftEngineers Association(ALAEA)until31December2014andtheTransportWorkersUnion(TWU)until30June2014andiscurrently participatinginArbitrationontheworkplacedeterminationfortheAustralianInternationalPilotsAssociation(AIPA).The ShortHaulPilotsEBAopenedon31August2012andnegotiationsareatanearlystage.BoththeLongHaulFlight AttendantsandMetalsEnterpriseAgreementsopeninJanuary2013.
KeyPeopleStatistics
Measure Numberoffulltimeequivalentemployees Percentageofwomen Percentageofwomeninseniorpositions PercentageofwomenDirectorsontheQantasBoard NumberofwomenDirectorsontheQantasBoard Percentageoffemalegraduatesrecruited NumberofIndigenousAustralianemployees Percentageofparttimeemployees Employeesbyagegroup(permanentemployees) 1624Years 2534Years 3544Years 4554Years 5564Years 65Years+
Unit # % % % # % # % % % % % % %
2012 2011 2010 2009 2008 GRIIndicator 33,584 33,169 32,490 33,030 34,295 LA1 41.6 41.1 41.7 41.7 42.2 LA13 31.5 29.9 22.1 24.9 25.3 LA13 25.0 27.3 20.0 18.2 18.2 LA13 3 3 2 2 2 LA13 61.5 35.0 LA13 354 338 304 269 203 LA13 14.1 13.4 13.1 12.9 12.8 LA13 4.1 4.2 4.5 5.3 5.6 19.8 20.2 20.6 21.3 22.4 30.4 31.2 32.3 33.0 33.6 30.9 30.4 29.9 28.7 27.7 13.6 13.1 12.0 11.2 10.3 1.2 0.9 0.7 0.6 0.4
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COMMUNITY
Priorities Philanthropic Activities: Continued support of charitable organisations through the Qantas Foundation Continued investment in Australian communities Arts and Sports sponsorships to align with Qantas brand values
Actions Taken During 2011/2012 Qantas Foundation supported over 12 charitable organisations in 2011/2012
Progress
Achieved
Qantas continued to support arts and sports of cultural significance and importance in alignment with brand values
Achieved
Indigenous support Commitment to Reconciliation Action Plan 450 Indigenous employees by December 2013
Third Reconciliation Action Plan launched Continued support of Indigenous employment
Achieved / On Track

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COMMUNITY
Working with communities and supporting charitable organisations is part of the Qantas Group's responsibility as Australias largest airline and a national icon. The Qantas Group has a strong commitment to strengthen the communities in which we serve, work and live by building partnerships to improve community engagement. The Group is a major contributor to community initiatives, environmental initiatives, sponsorships, Indigenous partnerships, charitable fundraising and staff volunteering that will benefit and support the Australian culture as a whole. In 2011/2012 the Qantas Groups total community investment exceeded $22 million. Strategy Both Qantas and Jetstar manage their philanthropic and community activities via two channels which are bought together under the banner of "Sharing The Spirit", a series of partnerships, programs and initiatives designed to help Australians connect with their heroes, their loved ones & their dreams.
Sharing The Spirit
Qantas Foundation
The Qantas Foundation forms part of the Qantas Groups commitment to operating in a sustainable and socially responsible manner by harnessing Qantas people and resources to build a sustainable future for all Australians and helps communities at times of urgent need
Spirit of Community
The Qantas Group is a proud supporter of many of Australia's community and charitable organisations. The Qantas Group continues to play a vital role in supporting cultural organisations across Australia aiming to nurture and develop the Arts community in Australia The Qantas Group supports a number of Australian sports, events and athletes which are key to the Australian culture and of huge importance to the Australian community The Spirit of Reconciliation reflects the Qantas Groups commitment to working in partnership with Indigenous communities across Australia through a range of initiatives Many Qantas Group employees volunteer for worthy causes and donate to charity through the Qantas Workplace Giving program
Qantas In the Community
Spirit of the Arts
Spirit of Sports
Spirit of Reconciliation Spirit of Our People
Philanthropy
Jetstar continues to partner with World Vision Australia through StarKids and in December 2011 launched the community programme Flying Start in New Zealand Jetstar continues to be a proud sponsor of sporting bodies and identities which are of importance to the communities in which Jetstar operates
Community
Regional Australia
QantasLink continues to support the economic development of regional communities, promote tourism in regional areas and sponsor events and organisations of importance in regional Australia.

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The Qantas Foundation The Qantas Foundation (the Foundation) is a separate legal entity, established as a charitable trust, and governed by an Independent Board of Directors. The Foundation proactively researches all partnership opportunities and conducts thorough due diligence carried out on all potential partnerships to make sure they align with the Qantas Foundations values and objectives. Priorities are set for each financial year in the funding categories of General Philanthropy, Environment and Arts. Funding in Financial Year 2012 was distributed as follows:
The Qantas Foundation Funding and Initiatives for Financial Year 2012
General Philanthropy - Education Through the Australian Business Community Network Qantas is assisting in the provision of reading and literacy programs for primary school students and mentoring support for secondary students and school principals. Arts The Foundation continued it s support of contemporary art in 2011/2012 by recognising eight Australian contemporary artists through the Qantas Foundation Encouragement of Australian Art Award. The Award recognises emerging Australian contemporary artists and aims to increase awareness of Australian contemporary art by encouraging promising, emerging artists to produce further work. Over the past four years the award has helped to support the careers of 36 Australian artists. Environment Support of the 2011 Great Northern Clean Up and the 2012 Clean Up Australia Day Campaigns removed 16,199 tonnes of rubbish from the environment. 1,016 Qantas Employees and Friends participated at 19 sites nationwide and Qantas promoted Clean Up Australia Day on in-flight entertainment. In 2011/2012 funding assisted Fauna and Flora Australia to develop indigenous workforce capacity in the Great Sandy Biosphere in the Burnett Mary region of Queensland by employing traditional natural resource management techniques. In 2011/2012 the Foundation funded Landcare Australia to conduct extensive rehabilitation and revegetation projects along the Murray Darling Basin, extending from north of Roma in Queensland to Goolwa in South Australia. The project also provided an opportunity to engage with local communities through education and participation events.
General Philanthropy - Community The Foundation continued to support of Mission Australia by providing funding for Circles of Care. The program is providing intensive support and linking families with community services to help them overcome personal and financial challenges. Based in the school communities of White Rock and Yarrabah in the Cairns Southern Corridor, the program primarily aims to support children who exhibit behaviours indicative of underlying personal, school or family problems.
15%
7% 10% 32% 36%
General Philanthropy - Health The Qantas Foundation supported the Black Dog Institute and the expansion of their REACH Program. The program is a nine week psycho-educational support group model for people with depression and/or bipolar disorder. Funding will enable the Institute to roll-out the program to locations outside of New South Wales and recruit and train volunteer facilitators to deliver the program. Funding of Redkite allows development and distribution of support packs for teenagers and young adults who have been recently diagnosed with cancer. In 2011/2012 Qantas Employees assisted in packing and distributing 350 support packs. The Foundation continues to support the Royal Flying Doctor Service with the 2011/2012 funding enabling the service to run Fly Around Clinics in remote NSW regions, resulting in approximately 350 patients being seen. In 2011/2012 The Foundation assisted Youngcare by providing a number of 'At Home Grants' to enable young people with disabilities who are living at home to remain in their homes. The Foundation continues to support The Fred Hollows Foundation by providing funding for the Prevention of childhood anaemia in Indigenous Communities in the Northern Territory.
53%
Fundraising and Donations The inaugural CEO Cookoff, a joint venture between Qantas and OzHarvest, raised $945,000 for OzHarvest and Mission Australia and fed over 1,000 disadvantaged Australians The Qantas Foundation matched all charitable donations contributed by Employees through the Qantas Workplace Giving Program Over 40 boxes of female corporate clothing were donated by Employees through the Dress for Success Corporate Clothing Drive Over 2,000 toys were collected and distributed to various charities including Mission Australia, St Vincents de Paul, Ozharvest and St George Community Housing during a toy drive for Second Chance Toys.

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Qantas in The Community Complementing the work of the Qantas Foundation are key programs, partnerships and events. Arts and Sports sponsorships are chosen for their importance to the Australian people and must align with the Qantas core values of care, forward thinking, wisdom of experience and contemporary Australia. Highlights for 2011/2012 are as follows:
Spirit of Arts Qantas continues to play a vital role in supporting cultural organisations across Australia with the hope that this commitment will nurture and develop the Arts community in Australia. In 2011/2012 The Qantas Group proudly sponsored: The Australian Chamber Orchestra The National Gallery of Victoria Opera Australia Museum of Contemporary Arts Australian Ballet Sydney Dance Company CARE Australia Taronga Zoo National Breast Cancer Foundation Royal Institute for Deaf and Blind UNICEF Australia Telethon Institute for Child Health Research The Australian Film Institute Gondwana Indigenous Choir Australian Girls Choir National Boys Choir Jumbana Art Gallery of NSW Spirit of Our People In 2011/2012 Qantas employees continued to support those less fortunate through a variety of events and initiatives. These included, but were not limited to, donations through the Workplace Giving Program, support for the Royal Childrens Hospital in Victoria and the RSPCA Animal Rescue Centre through the Community Service Team and The Qantas Cabin Crew Team continued to assist those less fortunate by providing support and practical assistance to disadvantaged people around the world. In addition, support for the Royal Institute for Deaf and Blind Children (RIDBC) continued through the Qantas Pathfinders initiative which has raised more than $6 million for RIDBC since the program started. Spirit of Reconciliation Spirit of Sports The Spirit of Competition is a key to Australian culture. Qantas is proud to sponsor a number of events and Organisations and to be the Official Partner and Airline of the Qantas Socceroos, the Qantas Wallabies, Football Federation Australia, Hyundai ALeague and Cricket Australia. Qantas has been a long time sponsor and partner of the Australian Olympic and Paralympic teams. To build on this support and commitment Qantas recently welcomed 15 talented athletes, representing 8 sports to the Qantas family as Ambassadors. Qantas is delighted to be supporting them all on their journey to the London 2012 Olympic and Paralympic Games. In 2011/2012 Qantas continued its proud partnership with TM Formula 1 in Australia as Premier Partner of the 2012 Formula TM 1 Qantas Australian Grand Prix. The Qantas Spirit of Youth Awards (SOYA) SOYA has been a leading grants program for emerging creative talent for over seven years and aims to celebrate and reward young Australian creative talent. Spanning 11 key creative disciplines SOYA provides practical support and the opportunity to build a professional mentoring relationship with creative leaders. The program aims to help young innovators expand their horizons, build up their business base, and learn the ropes from leading industry icons and some of the greatest creative minds in the world.
UNICEF Change for Good The UNICEF Change for Good initiative allows customers to place foreign and local change in envelopes provided on any of the 5,000 Qantas flights. Qantas passengers have raised an astounding $25 million since the programs inception, 21 years ago.
The Qantas Reconciliation Action Plan (RAP) sets the strategic direction for the initiatives undertaken by the business with Indigenous Australia. The RAP is a publicly available document, endorsed by Reconciliation Australia, the peak national organisation promoting reconciliation between Aboriginal and Torres Strait Islander peoples and the broader Australian community. Qantas reports annually to Reconciliation Australia on progress against the targets outlined in the RAP. In May 2012, the third Qantas RAP was released in line with Reconciliation Australia's elements of Respect, Relationships and Opportunities.
Indigenous Programs Qantas supported during 2011/2012 included, but were not limited to: - Jawun an organisation that partners with corporate Australia and Indigenous communities to connect skilled corporate staff with Indigenous communities to share knowledge and expertise. Corporate and Indigenous leaders come together to share their skills and knowledge to create real change. Bangarra Dance Theatre Australias leading Indigenous performing arts company and recognised nationally and internationally for distinctive dance theatre performances that combine the spirituality of traditional culture with modern story. Qantas supported Indigenous achievement and education through new partnerships with Careertrackers Indigenous Internship Program, Australian Indigenous Education Foundation, The Clontarf Foundation and National Centre of Indigenous Excellence. In addition, Qantas promoted learning of Indigenous culture and heritage by broadening the suite of Indigenous Cultural Awareness Training to employees across the business. Qantas Sustainability Review 2012
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Jetstar Philanthropy Jetstar continues to partner with World Vision Australia through StarKids a major philanthropic program that supports community based projects in key Jetstar international destinations such as Vietnam, Indonesia and Thailand, as well as domestic projects in Australia. In 2011/2012 Jetstar launched the community program Flying Start in New Zealand. The program invites local organisations and charities to apply for a Jetstar Flying Start quarterly grant made up of both flights and cash to help them with a project that will benefit the local community. The first two grant recipients were announced in early 2012: Bellyfull is a not-for-profit organisation which provides free, home-cooked meals to families who have newborns, are struggling with the illness of a parent or child, or are new to a community Arthritis New Zealand runs a specialised camp for children suffering from arthritis, giving them the chance to break down boundaries and build their confidence
In 2011/2012 Jetstar raised over $218,000 through workplace giving, in-flight donations on Jetstar flights and voluntary donations by passengers at the time of booking. In addition, Jetstar nominated a dedicated StarKids Program Leader and formed a network wide Project Team with the aim to expand the project to other regions.
Community Jetstar continues to support sporting bodies and identities which are of importance to the communities in which Jetstar operates. In 2011/2012 Jetstar continued as major naming right partner of the Gold Coast Titans in the National Rugby League and continued to partner with the Womens Tennis Association (WTA) to be the first ever official airline partner . In addition, Jetstar continues to maintain support for Australian tennis player Sam Stosur.

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Regional Australia Supporting the economic development of regional communities continues to be an important priority for the Qantas Group. The Qantas Groups dedicated regional business, QantasLink, serves as a lifeline to millions of Australians who can live thousands of kilometres from a capital city and hundreds of kilometres from the nearest town. QantasLink plays an important part in serving regional Australia by transporting farmers, social workers, teachers, medical staff and resource industry workers to outback communities. Significant investment in the QantasLink fleet is to see growth in the next 12 months with QantasLink also supporting Australias fly in fly out mining community through operation of the Qantas Groups Western Australian resources charter airline Network Aviation.
QantasLink Currently: - Operates more than 60 aircraft Operates approximately 2000 flights per week Supports a network of 56 metropolitan and country destinations
In addition to growing services, investing in new aircraft and job creation, QantasLink promotes tourism in regional areas and supports charitable initiatives. QantasLink is proud to play an active part in the community by supporting a range of local and global organisations and events and engaging with local communities. During 2011/12 community initiatives included, but were not limited to: Officially launching Tamworth Country Music Festival as the event celebrated its 40th year anniversary and unveiling a Bombardier th Q400 aircraft featuring with the festivals official 40 anniversary logo, a large golden guitar Supporting the 51st Tunarama Festival in Port Lincoln as the main sponsor Supporting Brisbane to Gladstone Yacht Race as the naming rights sponsor Providing continued assistance in many of 56 regional communities it flies to for charitable causes as well as promoting and marketing regional communities. QantasLink provides direct employment for more than 1,200 people in metropolitan and regional centres. The following table provides examples of total direct spend within two Regional Australian communities:
Local population Passengers carried 2011 Spend on local accommodation 2012 Spend on local catering 2012 Aviation charges and fees to local councils 2012 Spend on local ground handling Total Qantas direct spend 2012 Local employment Kalgoorlie 33,000 242,347 $88,200 $62,400 $6.686 million $1.416 million $8.3 million GHA Contractors 19 Security contractors 12 Karratha 17,000 614,998 $61,000 $275,600 $14.905 million $3.682 million $19 million GHA Contractors 61 Security Contractors 12
Key Community Statistics - Economic Contribution to Australia Units Tourism spending by Group passengers National export revenue Domestic traveller expenditure Indirect contribution to the national economy Economic output $M $M $M 2012 5,372 22,255 33,020 2011 5,534 19,644 31,277 2010 5,406 19,035 28,921 GRI indicator EC1 EC1 EC9

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48
SustainabilityGlossary
A
Absenteeism Theaveragenumberofannualiseddaystakenassickleave(includingcarersleave)peremployeefrom1Julyto30Junefor employeeswhoareemployedasat30June. Scope: AllAustralianandNewZealandbasedemployeesofwhollyownedentitiesoftheQantasGroup. ASK,Availableseatkilometre A measure of an airlines capacity. Total number of seats available for passengers, multiplied by the number of kilometres flown. Australiandomesticcancellations ThepercentageofAustraliandomesticcancellationsfrom1Julyto30June.Anycancellationthatoccurswithinsevendaysof originalscheduleddeparturetimeisrecordedasacancellationforontimeperformancepurposes,aspertheBITREAirlineOn TimePerformancedefinitions. Scope: Australiandomesticscheduledservices Australiandomesticontimearrivals ThepercentageofAustraliandomesticontimearrivalsfrom1Julyto30June.Aflightarrivaliscountedasontimeifitarrivesat thegatewithin15minutesofthescheduledarrivaltimeforsectorsflown.Neitherdivertednorcancelledflightscountasbeingon time,aspertheBITREAirlineOnTimePerformancedefinitions. Scope: Australiandomesticscheduledservices Australiandomesticontimedepartures ThepercentageofAustraliandomesticontimedeparturesfrom1Julyto30June.Aflightdepartureiscountedasontimeifit departsfromthegatewithin15minutesofthescheduleddeparturetimeandsubsequentlyproceedstotakeoff,forsectors flown.Neitherdivertednorcancelledflightscountasbeingontime,aspertheBureauofInfrastructure,TransportandRegional Economics(BITRE)AirlineOnTimePerformancedefinitions. Scope: Australiandomesticscheduledservices Averagefleetagescheduledpassengerfleet TheaverageageoftheGroupsscheduledpassengerfleetbasedonmanufacturingdates. Scope: ThescheduledpassengerfleetofthewhollyownedentitiesoftheQantasGroupandJetstarAsia,includingbothownedand leasedaircraft.TheQantasGroupsscheduledpassengerfleetdoesnotincludededicatedfreightersandNetworkAviationfleet. Aviationfuelconsumption ThetotalvolumeofaviationkeroseneconsumedbytheQantasGroupsflyingbusinessesfrom1Julyto30June. Scope: AviationfuelconsumptionincludesQantas,Jetstar(excludingJetstarAsia),QantasLink,NetworkAviation,JetconnectandQantas Freight,forbothdomesticandinternationaloperations.Aviationfuelconsumptiondoesnotincludeconsumptionbycodeshare partners.AviationfuelconsumptionbyNetworkAviationisincludedfrom11February2011whenthisentitywasacquiredbythe Group.
B
BITRE BureauofInfrastructure,TransportandRegionalEconomics(refertowww.bitre.gov.au).
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C
CO2eemissionsfromaviation(Group) Theamountofgreenhousegasemissionsmeasuredincarbondioxideequivalent(CO2e)tonnesgeneratedfromaviationfuel consumptionfrom1Julyto30June.UndertheAustralianGovernmentsDepartmentofClimateChangeandEnergyEfficiency NationalGreenhouseAccounts(NGA)Factors,emissionsincorporatedintothecalculationincludecarbondioxide(CO2), methane(CH4)andnitrousoxide(N2O).TheQantasGroupappliestheNGAFactorsconversionsandmethodologyforthe calculationofCO2e. Scope: AsperthescopeofAviationfuelconsumption. CO2eemissionsfromaviation(Australia) TheamountofgreenhousegasemissionswithinAustraliameasuredinCO2etonnesgeneratedfromaviationfuelconsumption(as definedabove)from1Julyto30Junethatisattributabletodomesticcodedflights. Scope: EmissionsfromaviationfuelconsumptionbydomesticflightsofQantas,Jetstar,QantasLink,andNetworkAviation. CO2e emissions from aviation (rest of world) The difference between CO2e emissions from aviation (Group) and CO2e emissionsfromaviation(Australia) CO2eper100RTKs Fuelper100RTKs(asdefinedabove)convertedtoCO2etonnesbytheNGAFactors. Scope: WhollyownedentitiesoftheQantasGroup,excludingNetworkAviation.
D
Domestictravellerexpenditure DomestictravellerexpenditureiscalculatedasthenumberofQantasGroupdomesticpassengersforthefinancialyearmultiplied bytheestimatedaverageexpenditurepervisitorof$681(Source:TourismAustraliasMarch2012NationalVisitorSurvey(latest availabledata))(2011:$620(Source:TourismAustraliasMarch2011NationalVisitorSurvey)).Thisamountincludesthevalueof relatedairfares.Asitisnotpossibletodisaggregatethedata,thecalculationshouldbeviewedasindicativeonly,e.g.thefigure mayincludesomeinternationalvisitorexpenditure(wheredomesticflightsarepurchasedafterarrivalinAustralia)orunderstate theexpenditureassociatedwithdomesticflightswhichareroundtrip. Directwastetolandfill(Australia) Thetotalsolidwasteandquarantinewastegenerated,asmeasuredintonnes,wherethiswasteisdeliveredfromQantas premisesdirectlytoalandfillsiteandwheretheQantasGroupisresponsibleforthewasteremovalandisseparatelybilled(that is,wherethereisaseparatelyidentifieditemonabillforwasteandisnotpartofageneraloverheadcharge)fortheperiod1July to30June. Scope: QantasGroupsiteswithinAustralia.
E
Economicoutput ThismeasureiscalculatedastheQantasGrouptotalrevenuemultipliedbyaQantasGroupeconomicmultiplierof2.1(ascalculated byAccessEconomicsin2008).ThemultiplierisderivedfromAustralianBureauofStatisticsinput/outputtablesoftheAustralian economy.AccessEconomicsisaneconomicadvisorycompanywhichprovidesexpertiseinanalysis,modellingandforecasting. AccessEconomicswascommissionedbyQantastogainabetterunderstandingoftheGroupscontributiontotheAustralian economy.Amultiplierof2.1suggeststhata$1millionincreaseindemandforQantasservicesleadstoa$2.1millionincreasein outputfromallsectorsintheeconomy,includingairtransportation.Inotherwords,theflowoneffectoutsideoftheQantas Groupforevery$1millionofrevenueis$1.1million. Electricity(Australia) Thetotalamountofelectricityconsumedasmeasuredinmegawatthours(MWh)whereelectricityisseparatelybilledforthe period1Julyto30June. Scope: QantasGroupsiteswithinAustralia.NetworkAviationdataisincludedin2011/2012only.
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F
Fuelper100RevenueTonneKilometres(RTKs) Aviationfuelconsumptionper100RTKsfrom1Julyto30June.Revenuetonnekilometres(RTKs)isthetotalnumberoftonnesof payingpassengers,freightandmailcarried,multipliedbythenumberofkilometresflown. Scope: WhollyownedentitiesoftheQantasGroup,excludingNetworkAviation. Fuelper100RevenueTonneKilometres(RTKs)(Qantas) Aviationfuelconsumptionper100RTKsfrom1Julyto30June.Revenuetonnekilometres(RTKs)isthetotalnumberoftonnesof payingpassengers,freightandmailcarried,multipliedbythenumberofkilometresflown. Scope: QantasAirlines FTE Fulltimeequivalent.
L
LostWorkCaseFrequencyRate(LWCFR) Thetotalnumberofinjuriesorillnessesduringworkhours(1Julyto30June)withanacceptedworkerscompensationclaimfor Australianbasedpersonnel,orequivalentinotherjurisdictions,whichresultedintotalincapacity,permillionhoursworked.Total incapacityisdefinedasanyinjuryorillnessthatresultsinaninjuredworkerbeingunfitforwork.Journeyandslipportinjuriesare excludedfromthiscalculation.Thismetricincludesembeddedcontractors(asdescribedabove).Calculationisbasedoninjury recordstatusasat13July2012(2011:14July2011). Scope: EmployeesandembeddedcontractorsofwhollyownedentitiesoftheQantasGroup.
N
Nationalexportrevenue NationalexportrevenueiscalculatedasthenumberofinboundvisitorsbroughttoAustraliabyQantasandJetstar(including JetstarAsia)forthe12monthsto31May(latestavailabledataasat30June)multipliedbytheestimatedaveragevisitor expenditureof$3,313.(Source:TourismAustraliasMarch2012InternationalVisitorSurvey(latestavailabledata))(2011:$3,315 (Source:TourismAustraliasMarch2011InternationalVisitorSurvey)).Thisamountdoesnotincludethevalueofairfareand freightchargesthataccruetotheQantasGroupfromoverseassources.Thesealsorepresentexportrevenue. Numberoffulltimeequivalentemployees Thetotalnumberoffulltimeequivalent(FTE)employeesasat30June,reportedintotalforeachsegmentoftheQantasGroupin Australiaandoverseas.Thisiscalculatedusingstandardworkinghoursforfulltimeandparttimeemployeesandactualhours workedbythecasualandtemporaryworkforce. Scope: WhollyownedentitiesoftheQantasGroupaswellasJetstarAsia. NumberofIndigenousAustralianemployees ThenumberofselfidentifiedAboriginalandTorresStraitIslanderemployeesacrosstheQantasGroupasat30June. Scope: WhollyownedentitiesoftheQantasGroup. NumberofwomenDirectorsontheQantasBoard ThenumberoffemaleDirectorsontheQantasBoardasat30June. Scope: WhollyownedentitiesoftheQantasGroup.
51
P
Percentageofparttimeemployees ThepercentageofparttimepositionsinthewhollyownedentitiesoftheQantasGroupinAustraliaandoverseasasat30June. Parttimepositionsincludepermanentandtemporaryparttimepositions.Parttimeemployeesaredefinedasthosewhose assignedworkinghours(aspercontract)arelowerthanthepositionsstandardworkinghours. Scope: WhollyownedentitiesoftheQantasGroup. Percentageoffemalegraduatesrecruited ThepercentageoffemalegraduatesrecruitedintotheQantasGraduateProgramduringthefinancialyear. Scope: TheQantasAirwaysGraduateProgram. Percentageofwomen ThepercentageoffemaleemployeesofthewhollyownedentitiesoftheQantasGroupinAustraliaandoverseasasat30June. Scope: WhollyownedentitiesoftheQantasGroup. PercentageofwomenDirectorsontheQantasBoard ThepercentageoffemaleDirectorsontheQantasBoardasat30June. Percentageofwomeninseniorpositions ThepercentageoffemaleemployeesinseniormanagementpositionsinthewhollyownedentitiesoftheQantasGroupin Australiaandoverseasasat30June. Scope: WhollyownedentitiesoftheQantasGroup.
R
RTK,Revenuetonnekilometre Quantifies the amount of revenue generating payload carried, for the distance flown. Total number of tonnes of paying passenger,freightandmailcarried,multipliedbythenumberofkilometresflown.
T
TotalRecordableInjuryFrequencyRate(TRIFR) Thetotalnumberofinjuriesorillnessesduringworkhours(1Julyto30June)withanacceptedworkerscompensationclaimfor Australianbasedpersonnel,orequivalentinotherjurisdictions,permillionhoursworked.Journeyandslipportinjuriesare excludedfromthiscalculation.ThismetricincludesembeddedcontractorsthatworkexclusivelyfortheQantasGroupand performworkthatisconsideredcorebusiness.Calculationisbasedoninjuryrecordstatusasat13July2012(2011:14July2011). Scope: EmployeesandembeddedcontractorsofwhollyownedentitiesoftheQantasGroup.
W
Water(Australia) Thetotalamountofwaterconsumedasmeasuredinkilolitreswherewaterisseparatelybilledfortheperiod1Julyto30June. Scope: QantasGroupsiteswithinAustralia.
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Qantas Sustainability Review 2012

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Qantas Sustainability Review 2012

Heading Sustainability is fundamental to the Qantas Groups performance

Aviation Fuel and Carbon Emissions Electricity Water Waste

Domestic On-time Performance

Qantas Annual Report 2012 and Qantas Data Book 2012

2011/2012Highlights QantashasadoptedeightnewNonNegotiableBusinessPrinciplesthatformthe foundationfortheQantasGroupsCorporateGovernanceFrameworkandPolicies NamedasAustralianIndigenousMinoritySupplierCouncil(AIMSC)Corporate MemberoftheYear

FurtherinformationontheQantasCorporateGovernanceframework,includingacopy oftheQantasConstitution,BoardandCommitteeChartersandtheBusinessPractices Document,isavailableatQantas.com.

QantascorporategovernanceframeworkcomprisesanumberofprinciplesandpolicieswhichtogetherenableQantasto complywithlegal,regulatoryandethicalstandards.Theseprinciplesandpoliciesarederivedfromvarioussources,including theQantasConstitution(Constitution)andtheAustralianstatutoryandregulatoryframework.

ToassisttheBoardinsettingandreviewingthestrategicdirectionofQantasandmonitoringtheimplementationofthat strategybyQantasmanagement,theBoardhasadoptedaformalCharter.TheBoardCharterisavailableintheCorporate GovernancesectionoftheQantaswebsite.

Safety,Health, Environment andSecurity Committee

Qantas Executive Team

Jetstar Executive Team

Loyalty Freight Corporate Management Management Management Board Board Board

TheNominationsCommitteemakesrecommendationstotheBoardtoensuretheBoardscompositionisconduciveto makingdecisionsexpediently,withthebenefitofavarietyofperspectivesandskills,andinthebestinterestoftheQantas Groupasawhole.

Composition Chairman GenderDiversity

TwelveDirectors ElevenDirectorsareIndependentNonExecutiveDirectorselectedbyShareholders OneExecutiveDirector,ChiefExecutiveOfficerAlanJoyce Chairman,LeighClifford,isanIndependentNonExecutiveDirector TwentyfivepercentoftheDirectorsontheQantasBoardarewomen(3women)

ToassisttheBoardinfulfillingitsdutiesandresponsibilities,ithasestablishedthefollowingfourCommittees: NominationsCommittee RemunerationCommittee AuditCommittee Safety,Health,Environment&SecurityCommittee

EachCommitteehasaformalCharterandassiststheBoardbyconsideringdetailedissuesandmakingrecommendationsto theBoardaboutmatterswithineachCommitteesremit.EachCommitteesCharterisavailableinthecorporategovernance sectionoftheQantaswebsite.

Safety,Health, Environment&Security Committee

TheGroup'sexecutivemanagementteamistheQantasGroupExecutiveCommittee(ExecutiveCommittee).TheExecutive CommitteeischairedbytheCEOandmeetsfortnightlytoreviewtheperformanceoftheGroupandmakedecisionsthat impactmorethanoneGroupbusinesssegment(Segment).

Qantas Jetstar Loyalty

QantasGroupNonNegotiableBusinessPrinciples Duringtheyear,theBoardadoptedtheQantasGroupNonNegotiableBusinessPrinciples(Principles).ThePrinciplesareset outbelow.

safetyandhealth legalmatters financematters

contractreviewandexecution environmentandsustainability informationtechnology

compliancewithlaws,regulations andethicalstandards continuousdisclosure sharetrading politicaldonationsandprohibited payments WhistleblowerPolicy

compliancewithcompetitionlaws givingorreceivinggifts conflictsofinterest accountingrecordsandretention ofrecords dealingwithauditors

makingpublicstatementsabout theQantasGroup useofconfidentialinformation treatingpeoplewithrespect thewhistleblowerprocess privacy equalemploymentopportunity

TheQantasGroupWhistleblowerPolicyencouragesemployeestoreportconcernsrelatingtoillegal,unethicalorimproper conductincircumstanceswheretheymaybeapprehensiveaboutraisingtheirconcernbecauseoffearofpossibleadverse repercussions.

TheQantasGroupalsohasformalpoliciesandstatementsrelatingtoitslegalandotherobligationstoalllegitimate stakeholders.Theseincludeareassuchassafety,health,environment,security,employmentpractices,diversityandfair trading.Policiesaresupportedbyproceduresforcomplianceandmonitoringeffectiveness.

AnestablishedsetofcorevaluesallowsQantasemployeestobetterconnectwitheachotherandtoQantascustomers. Qantasisabrandthatcares,isforwardthinking,haswisdomofexperienceandrepresentsthebestofcontemporary Australia.

Safety,Health,EnvironmentandSecurity Committee CEO

BUSINESSRESILIENCE TheQantasGrouphasanindustryleadingBusinessResiliencecapabilitytoproactivelyidentifydevelopingrisks,respond effectively,recoverquicklyandalwaysemergeasastrongerandmorecapableorganisation.

Group Procedures andGuidelines

Group Emergency Response Procedures

GroupCrisis Management Plan

BusinessArea Procedures andGuidelines

Local Emergency Response Procedures

CriticalBusiness Analysis ContinuityPlans forCritical functions

Contingency Plansas requiredbya threat,riskor incident

RelevantGroup Crisis Management documentation

Qantas Executive Team

Jetstar Executive Team

Loyalty Executive Team

Freight Management Team

Corporate Management Team

SUPPLYCHAIN QantasGroupProcurementPoliciesandProcedures TheQantasGroupiscommittedtoapplyingaholisticapproachtoprocurementwhichensuressupplierrelationshipsand costsaremanagedinacompetitive,fairandethicalmanner.

Qantas Sustainability Review 2012

ENVIRONMENT Environmental Governance

The Qantas Group Environmental Management System (EMS)

The Qantas Group Environment Policy

The Qantas Group Environmental Strategy

Qantas Group Environmental Strategy

Environmental Priority Areas

Utilities / Resources Fuel Efficiency Fleet Renewal

Electricity Sustainable Aviation Fuel Fleet Renewal Community Operational Procedures

Qantas Sustainability Review 2012

Direct Greenhouse Gas Emissions

The Qantas Groups Carbon Footprint

Fuel Efficiency (Litres of fuel per RTK)

The Qantas Group s Emissions Commitments

40.0 39.5 39.0

12,000 11,800 11,600

From 2020 Carbon Neutral Growth

38.5 38.0 37.5 FY2009 FY2010 FY2011 FY2012